Pound vs Aus Dollar, NZ and Canadian Dollars: GBP Forecasts to Fall vs AUD, NZD and CAD As Oil Price & Shares Tumble

October 17, 2014 - Written by John Cameron

STORY LINK Pound vs Aus Dollar, NZ and Canadian Dollars: GBP Forecasts to Fall vs AUD, NZD and CAD As Oil Price & Shares Tumble

The sharp shift out of risk-laden assets continued yesterday, leading analysts to forecast the potential for the Aus Dollar (AUD), NZ Dollar (NZD) and Canadian Dollar (CAD) exchange rates to lose ground against the Pound Sterling (GBP).

Insiders forecast that world oil prices could fall further.

The latest forex conversion rates today:

The Pound to Australian Dollar exchange rate is -0.16 pct lower with a conversion rate of 1 GBP equals 1.83237 AUD.
The Pound to Canadian Dollar conversion rate is -0.23 pct lower at 1.80857 GBP/CAD.
The Pound to Euro conversion rate is -0.09 pct lower at 1.25594 GBP/EUR.
The Pound to New Zealand Dollar exchange rate converts -0.08 per cent lower at 1 GBP is 2.02496 NZD.
The Pound to US Dollar conversion rate is +0.06 pct higher at 1.61054 GBP/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!

Share Prices Plunge Causing Exchange Rate Volatlity

Global share markets continued their march Southwards during yesterday’s session and by the middle part of the European trading day London’s benchmark FTSE 100 and Frankfurt’s Dax had plummeted by almost two percentage points.

Meanwhile, the eurozone’s other leading bourse, Paris’s Cac 40, had shed almost 3% of its value.

The heavy losses followed hot on the heels of Wednesday’s pronounced shift lower for the world’s equities markets.

Deflation Creeping Into The Eurozone

The flight to safety from investors, which saw demand for bonds increase sharply, was partly driven by official figures published by the Eurostat agency which revealed that, although the overall level of Consumer Price Index inflation had remained just above the zero mark at an annualised 0.3% last month, a total of five of the euro area’s member states were suffering deflation.

Italy, Spain and Greece, alongside Slovakia and Slovenia, had registered a year-on-year decrease in prices, raising fear levels amongst market participants to new highs.

The development sent the Pound to euro conversion shooting upwards towards the 1.2600 GBP EUR threshold.

Pound to Canadain Dollar Today: Oil Prices Tumble

The sharp asset sell-off extended to the world’s commodity markets, with the price of a barrel of crude oil continuing to slide on the day. Both Brent Crude and West Texas Intermediate had shed around 1% of their value by the middle part of the trading day.

Currency market participants have been eye-balling the wholesale oil price in recent sessions for a read on the likely future direction for the Pound Sterling vs Canadian Dollar exchange rate (GBP CAD).

Any further fall could send GBP to CAD back up towards the middle part of the 1.8000 – 1.9000 trading range which it inhabited during the middle part of Summer.

Pound to Euro rate Forecast - GBP/EUR

Oil prices are also likely to feed in to the relative value of the euro between now and Christmas; with the euro land teetering on the brink of deflation, any continuation of the fall in the value of black gold, which makes up a component of the cost of almost every product sold in the region, could see October’s version of the closely-monitored Consumer Price Index data print at below 0% - a development which would signal an official breakout of deflation.

The resultant price action would be likely to catapult the Pound to euro exchange rate above the psycho locally significant 1.3000 GBP/EUR threshold for the first time in years.

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TAGS: American Dollar Forecasts Australian Dollar Forecasts Canadian Dolla Forecasts