Forecasts for British Pound Sterling (GBP), Euro (EUR), US Dolllar (USD) and Cdn Dollar (CAD) Exchange Rates

July 14, 2014 - Written by John Cameron

STORY LINK Forecasts for British Pound Sterling (GBP), Euro (EUR), US Dolllar (USD) and Cdn Dollar (CAD) Exchange Rates

Forecasts for British Pound Sterling (GBP), Euro (EUR), US Dolllar (USD) and Cdn Dollar (CAD) Exchange Rates - Tomorrow morning’s UK Consumer Price Index inflation numbers provide the next risk event of note as far as investors holding the POUND STERLING (currency:GBP) are concerned.

The Pound has endured a day of drift ahead of the release but it could be in for a renewed bout of support if, as analysts expect, the headline rate of British price rises increased last month. The outlook for Sterling is now NEUTRAL TO POSITIVE.

The EURO (currency:EUR) edged slightly higher against both the Pound and the US Dollar today.

There was widespread relief amongst investors holding euro-denominated assets when May’s eurozone Industrial Production numbers came in no worse than expectations and ‘no news is good news’ on the Portuguese front; some investors had feared that they might be waking up this morning to news of further woes for the Portuguese banking sector.

They didn’t materialise. The single currency is forecast to trade on a NEUTRAL footing and the current GBP EUR exchange rate stands at 1.2535.

The US DOLLAR (currency:USD) has marginally strengthened against Sterling today, sending the GBP USD exchange rate down to as low as 1.7065 earlier on.

The Buck appears to be benefitting from the weight of decent economic statistics since the turn of the year; five consecutive monthly Non Farm Payrolls results which showed that over 200,000 new positions had been generated in the vast US economy have helped to convince investors that the Federal Reserve may increase its key lending rate during the first half of next year.

With several investment banks now asserting that the Greenback has turned a corner against the other majors, the outlook for the Dollar is NEUTRAL TO POSITIVE.

The CANADIAN DOLLAR (currency:CAD) has outperformed almost all of the other sixteen most-actively traded global currencies so far today.

The Loonie has benefitted from higher levels of global risk sentiment as the weekly session got underway. An easing of tensions in Ukraine and a slight stabilisation in the situation in Iraq have helped and the firmer tone of data releases from the US during recent months have also benefitted the Canadian tender.

Tomorrow afternoon’s domestic Existing Home Sales numbers could prove market-moving due to their potential effect on investors’ Bank of Canada interest rate expectations. The outlook for the Loonie is NEUTRAL and the GBP CAD exchange rate stands at 1.8309.

Updated Pound, Euro, US & Canadian Dollar Exchange Rates - 16th June 2014

The Pound to Canadian Dollar exchange rate is trading down -0.02% at 1.84414 GBP/CAD.
The Pound to Euro exchange rate is trading up +0.06% at 1.26394 GBP/EUR.
The Pound to Dollar exchange rate is trading down -0.03% at 1.71370 GBP/USD.
The Euro to Canadian Dollar exchange rate is trading down -0.08% at 1.45903 EUR/CAD.
The Euro to Pound exchange rate is trading down -0.06% at 0.79117 EUR/GBP.
The Euro to Dollar exchange rate is trading down -0.09% at 1.35584 EUR/USD.

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