Current Pound, Euro, Dollar + Canadian Dollar Forecasts, Exchange Rate Analysis & Predictions 2014 / 2015

August 12, 2014 - Written by John Cameron

STORY LINK Current Pound, Euro, Dollar + Canadian Dollar Forecasts, Exchange Rate Analysis & Predictions 2014 / 2015

The POUND STERLING (currency:GBP) was bolstered yesterday by a report from leading accountancy firm BDO which found that the hiring intentions of British companies currently stand at their highest level since 1998. The figure, which hints at a continuation of the strong levels of growth which the UK economy has posted during recent quarters, mean that the forecast for the Pound is now NEUTRAL TO POSITIVE.

However, a disappointing showing from the latest set of domestic jobs figures, due for release tomorrow morning, could have the reverse effect.

The EURO (currency:EUR) gave up a little ground against both the Pound Sterling and the US Dollar during yesterday’s session as investors continued to fret about the possible negative effect which a move towards Quantitative Easing from the European Central Bank might have on the single currency. This morning’s whole of eurozone and German ZEW indices are likely to prove vital in shaping the future prospects for the euro.

Recent confidence surveys from continental Europe have added to the sense of unease in the region. If today’s gauges once again disappoint, then look for the single currency to leak further support.

The outlook for the euroland’s tender remains NEGATIVE and the Pound to euro exchange rate stands at 1.2541 GBP/EUR.

The US DOLLAR (currency:USD) was weighed down yesterday by comments from Federal Reserve Vice Chairman Stanley Fischer, who re-enforced the recent message from Fed Chair Janet Yellen that all is not as rosy as it might appear with America’s vast labour market. Fischer’s assertion that the sloth-like growth in the domestic supply of labour may hold back US economic growth led investors to conclude that the Fed may not hike its key interest rate within the next 12 months. The generalised ‘risk-on’ trading environment on the day also went against the safe-haven Buck.

The Dollar forecast is still NEUTRAL TO POSITIVE and the Pound to US Dollar exchange rate stands at 1.6783 GBP/USD.

The CANADIAN DOLLAR (currency:CAD) was the only one of the sixteen most actively traded global currencies to trade into positive territory against Sterling yesterday.

A spike in the global price of a barrel of crude oil helped the Loonie’s performance on the day and comments from Federal Reserve Vice Chairman Stanley Fischer hinting that market participants might have to wait a while for a tightening of monetary policy from the Fed added to the positive sentiment enveloping the Canadian unit.

The next risk event of note for the Canadian tender comes this afternoon in the form of the latest set of US Advance Retail Sales data – ironically a disappointing showing could favour the Loonie due to the negative effect which it will have on investors’ US interest rates projections.

The Loonie is predicted to trade with a NEUTRAL TO NEGATIVE bias and the Pound to Canadian Dollar exchange rate stands at 1.8353 GBP/CAD.

International Money Transfer? Ask our resident FX expert a money transfer question or try John's new, free, no-obligation personal service! ,where he helps every step of the way, ensuring you get the best exchange rates on your currency requirements.

TAGS: American Dollar Forecasts Canadian Dollar Forecasts Currency Predict Forecasts