Currency News

Daily Exchange Rate Forecasts & Currency News

Weekly Forecast For Pound Euro Exchange Rate & Predictions For US & Canadian Dollars

October 13, 2014 - Written by John Cameron

This week’s exchange rate trading session brings the publication of key data sets from several of the world’s major economies, leading analysts to forecast considerable price action for the Pound euro (GBP/EUR), US Dollar (USD) and the Canadian Dollar (CAD).



euro to pound weekly exchange rate reviewBefore we take a look at our weekly predictions below, let's first see where the GBP stands in today's FX markets:

The Pound to Canadian Dollar exchange rate converts +0.09 per cent higher at 1 GBP is 1.80190 CAD.
The Pound to Hong Kong Dollar exchange rate is -0.02 pct lower with a conversion rate of 1 GBP equals 12.48003 HKD.
The Pound to Singapore Dollar exchange rate is -0.28 pct lower with a conversion rate of 1 GBP equals 2.04540 SGD.
The Pound to Turkish Lira exchange rate is -0.72 pct lower with a conversion rate of 1 GBP equals 3.65107 TRY.
The Pound to Dollar exchange rate converts -0.04 per cent lower at 1 GBP is 1.60857 USD.

Don't forget if you are waiting to find the best exchange rate for a currency transfer, then you're best bet is to set up your future rate order with a foreign exchange broker!

Pound Sterling Forecast Today: to WEAKEN

The Pound has given up significant ground against the euro since the Sterling euro exchange rate jumped to its 27-month high of 1.2876 GBP EUR during the final days of last month.

Advertisement
The pair appeared near-term overbought at this stage, as investors expressed their support for the UK unit in a euphoric post-Scottish referendum buying spree.

Reality has set in during the intervening period and a technical retracement has taken place, sending the pair down to an intraweek low of 1.2658 On Wednesday.

Tuesday morning’s domestic inflation figures are key for the Pound – if as expected they reveal a decrease in the rate of UK price rises to 1.4%, then look for Sterling to incur further losses across the board.

Euro to Pound Rate Forecast Today: Remains NEGATIVE

The single currency has had a tough time of it during recent months, causing the EUR GBP exchange rate to slump to it lowest level for over two years at the end of September.

However, the euro’s fortunes have improved somewhat since the start of this month, following the announcement from the European Central Bank that it will not be including sovereign debt buy-ups as part of its asset purchase scheme – for the time-being at least.

The news that the ECB will not be cutting its interest rates any further represented more good news for euro-holders.

The relief rally which followed the ECB’s announcement allowed EUR GBP to recover, but this could all end on Tuesday morning, as analysts forecast that the ZEW Confidence Survey of the German economy will plummet to zero.

Expect the single currency to suffer as a result.

Pound vs Dollar Forecast To GAIN

The Buck has enjoyed a good run against the other sixteen most actively traded global currencies since the start of the Summer, sending the Pound Dollar exchange rate down from above the 1.7000 GBP USD threshold into the 1.5000s within the past week.

However, GBP USD appears to have hit a bank of resistance since then, as investors took fright at US Federal Reserve policymakers’ revelation in the most recent Fed minutes that they consider the Greenback to be unhelpfully strong.

Counter intuitively, a poor showing from Wednesday’s Advance Retail Sales data for September could be helpful to the Dollar.

Such an outcome would allow the Fed to ramp up its policy tightening talk, sending GBP USD lower. A print of 0.1% is expected, so the Buck could be in for a decent week in the markets.

Sterling to Canadian Dollar (CAD) Rate Forecast: POSITIVE

Support for the Canadian Dollar has weakened following last week’s move to a 4-year low for the price of a barrel of crude oil.

The news saw the Pound Sterling Canadian Dollar exchange rate end the week at almost bang on 1.8000; however further movement is forecast for the pair this week.

Investors should remain mindful that GBP CAD has changed hands in the 1.7500s as recently as last month, so a downside move could be possible for the pair.

If global oil prices bounce off their near-term lows and Friday’s Canadian inflation numbers reveal that domestic price rises are running at above the 2.0% level, then expect the Pound to track sharply lower against the Loonie.

In such a circumstance, a move back into the 1.7500s becomes a realistic possibility.
Like this piece? Please share with your friends and colleagues:

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

Comments are currrently disabled