Best Pound to Canadian Dollar and Norwegian Krone Exchange Rates Today as Oil Price Tumble Again

October 21, 2014 - Written by John Cameron

STORY LINK Best Pound to Canadian Dollar and Norwegian Krone Exchange Rates Today as Oil Price Tumble Again

The Pound vs Canadian Dollar hits best exchange rate levels since August 2014 as the week started as Crude Oil price falls again. GBP Sterling to Norwegian Krone rate forecasts to fall.

The price of a barrel of West Texas Intermediate (WTI) crude oil sank to its lowest level for over four years during the middle part of last week as supplies from across the globe continued to increase.

The uptick in output was particularly pronounced in North America, while the increase in the supply of energy via the controversial process of fracking on the other side of the Atlantic added to the over-supply of energy.

A quick look at today's forex rates:

The Pound to Canadian Dollar exchange rate today is converting -0.31 per cent lower at 1.81913 GBP/CAD.
The Pound to Euro exchange rate is -0.06 pct lower with a conversion of 1 GBP equals 1.26194 EUR.
The Pound to Norwegian Krone conversion rate is -0.11 pct lower at 10.58811 GBP/NOK.

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IMF Forecast Hurts Wholesale Oil Prices

Meanwhile, on the demand side, oil traders have been quick to factor-in the downward revision to its 2014 and 2015 global growth forecast from the International Monetary Funds of two weeks ago.

Looking to the traditional homeland of supply in the Middle East, analysts’ fears that the widespread unrest orchestrated by ISIS across the region might halt supply from key fields have failed to materialise.

Many analysts forecast that the current fall in wholesale oil prices has some way to go, but how will this structural alteration to the world economic picture effect the value of the Pound Sterling (currency:GBP) versus the Canadian Dollar (currency:CAD) and Norwegian Krone (currency:NOK)?

GBP CAD Forecast To Spike

The Pound to Canadian Dollar exchange rate broke to its highest level since August 2014 during yesterday’s afternoon session.

The oil-exporting Canadian economy has been hard hit by the sharp drop in global oil prices during recent sessions and economists forecast that there could be more upside to come for the pair.

Futures markets suggest that there is an implied 95% chance that the price of a barrel of WTI will remain within the $60 - $125 trading range within the next 12 months.

A continued drop to the bottom end of this bracket would hit the Loonie hard, with most analysts predicting a move up through to a fresh 5 ¼ year high above 1.8671 GBP/CAD for the pair in such a circumstance.

GBP NOK Predicted To Fall If Oil Recovers

Elsewhere, the Pound to Norwegian Krone exchange rate spiked to within a fraction of a Krone of its 5 ¼ year peak at 10.7700 last week, touching off 10.6754 on Thursday.

The pair would surely have registered a fresh multi-year peak were it not for Tuesday’s lacklustre UK inflation data for September, which revealed that the rate of UK price increases had slowed to a lowly year-on-year 1.2% last month.

However, a move towards the top end of the $60-$125 range which the futures markets confidently predict for oil over the next four quarters could readily see the pair reverse its near-term gains.

In such a situation, experts forecast that GBP NOK will track Southwards towards its 2014 low of 9.8539.

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TAGS: Canadian Dollar Forecasts Currency Predictions Norwegian K Forecasts