Updated Forecasts: Pound to Rand (GBP/ZAR) & Pound to Canadian Dollar (GBP/CAD) Exchange Rates

July 23, 2014 - Written by John Cameron

STORY LINK Updated Forecasts: Pound to Rand (GBP/ZAR) & Pound to Canadian Dollar (GBP/CAD) Exchange Rates

The past 24hrs have brought some interesting movement for some of the sixteen most actively-traded global currencies. The overnight Asian session brought a sustained move for the Australian Dollar (currency:AUD) following the publication of Q2 inflation figures from the Australian economy.

The numbers revealed that the rate of domestic price rises had touched an annualised 3.0% during the three months to the end of June. The news that price increases were on the rise in the Antipodean economy saw analysts start to back-track on their previous forecasts that the Reserve Bank of Australia might be about to cut its key lending rate. Tom Kennedy, economist at JP Morgan, observed that, ‘we think that the speculation regarding near-term rate cut that we've seen over the past four to six weeks is likely to be dialed back to a certain extent’. The development saw the Pound Sterling Australian Dollar exchange rate slump towards the psychologically-key 1.8000 GBP/AUD threshold, with the intraday low of 1.8009 coming during the morning European equities session. Aussie-watchers now predict that there could be further losses to come for the Australian unit in the short-term.

Elsewhere, the commodity-driven Canadian Dollar (currency:CAD) also climbed against Sterling on the session, sending GBP CAD down to as low as 1.8228. The Loonie was assisted by a stronger than anticipated set of month-on-month Canadian Retail Sales figures, published this afternoon. Analysts had been expecting a showing of 0.6% from the May number, so the print of 0.7% proved to be generally supportive of the Canadian tender. GBP CAD will need to break and hold below the 1.8000 threshold before market participants start believing that the pair has rejected the multiyear high which it struck earlier in the year.

Meanwhile, the pronounced shift out of Russian Ruble-denominated assets has helped the world’s emerging market currencies so far today. The escalation in the crisis in Ukraine which followed the shooting down of a Malaysia Airlines passenger flight last Thursday has caused yield-hunters to shift their funds into risk-driven currencies including the South African Rand (currency:ZAR) and the Turkish Lira (currency:TRY). The ensuing move sent the GBP ZAR exchange rate down to as low as 17.8370 and the GBP TRY exchange rate down to 3.5559. Expect further losses for these pairs if Russian Leader Vladimir Putin continues with his non conciliatory language towards the West.

Updated Pound Sterling, Canadian Dollar and Rand Exchange Rates - 25/07/20143

The Pound to Canadian Dollar exchange rate is trading up +0.01% at 1.82577 GBP/CAD.
The Pound to Rand exchange rate is trading down -0.04% at 17.88297 GBP/ZAR.
The Euro to Cad Dollar exchange rate is trading up +0.03% at 1.44733 EUR/CAD.
The Euro to Rand exchange rate is trading down -0.02% at 14.17628 EUR/ZAR.
The US Dollar to Cdn Dollar exchange rate is trading up +0.12% at 1.07584 USD/CAD.
The US Dollar to Rand exchange rate is trading up +0.07% at 10.53756 USD/ZAR.

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TAGS: Australian Dollar Forecasts Canadian Dollar Forecasts Currency Predi Forecasts