Exchange Rate Forecasts for British Pound Sterling, Euro, US Dollar and Canadian Dollar

November 14, 2014 - Written by John Cameron

STORY LINK Exchange Rate Forecasts for British Pound Sterling, Euro, US Dollar and Canadian Dollar

Currency News UK presents today's foreign exchange rate predictions for the Pound Sterling (currency:GBP) and our future forecast for the US Dollar (currency:USD) and the Canadian Dollar (currency:CAD).

The POUND STERLING (currency:GBP) hit the skids yesterday, sending the GBP EUR exchange rate briefly down into the 1.2500s – the pair had been changing hands in the 1.2800s in the first part of the week.

Sterling was weighed down on the day by the Bank of England’s forecast that the rate of UK price rises will fall below the 1.0% threshold during the next six months.

The implied threat that Britain may have to face-up to a potentially decimating bout of deflation is likely to weigh down the Pound into the medium term. For this reason, the outlook for Sterling is now NEUTRAL TO NEGATIVE.

The Pound to Australian Dollar exchange rate today is converting -0.06 per cent lower at 1.80245 GBP/AUD.
The Pound to Canadian Dollar exchange rate converts -0.72 per cent lower at 1 GBP is 1.77438 CAD.
The Pound to Euro exchange rate is -0.08 pct lower at 1.25773 GBP/EUR.
The Pound to New Zealand Dollar exchange rate today is converting -0.2 per cent lower at 1.99127 GBP/NZD.
The Pound to US Dollar exchange rate today is converting -0.53 per cent lower at 1.56177 GBP/USD.

Euro Exchange Rate Forecast: EUR Improves

The EURO (currency:EUR) enjoyed a reasonable session in the markets yesterday, sending the euro Dollar exchange rate EUR USD up by as much as half a percentage point during the latter stages of the European equities session.

Yesterday morning’s German CPI inflation numbers, which printed exactly as per analysts’ expectations, helped sooth frayed nerves, but the immediate prospects for the single currency hinge on today’s whole of eurozone Gross Domestic Product statistics.

A strong showing could see the euro improve further, but economists forecast a NEGATIVE performance for the single currency into the medium term as the European Central Bank goes to greater lengths to loosen its monetary policy. The current GBP EUR exchange rate stands at 1.2608.

US Dollar Exchange Rate Forecast: USD’s Bull Run Continues

The US DOLLAR (currency:USD) has continued to surge against the Pound during the past 24hrs.

The Buck outperformed almost all of the other sixteen most actively traded global currencies as analysts pull forward their predictions regarding the timing of the next Federal Reserve interest rate hike.

However, the Greenback’s Bull Run could come to an abrupt halt of this afternoon’s US Retail Sales and Michigan Sentiment data disappoint investors.

In the lead up to these key releases, analysts forecast that the Dollar will trade with a NEUTRAL bias. GBP USD stands at 1.5732.

Canadian Dollar (CAD) Exchange Rate Improves

Yesterday afternoon’s below par domestic housing sector data have stalled the recent improvement for the CANADIAN DOLLAR (currency:CAD) against the Pound.

The New Housing Price Index number for September showed a lower than anticipated increase from August’s counterpart figure and the Loonie suffered as a result.

The Canadian unit sorely needs a strong showing from the dual tier one data releases in the States this afternoon to reverse its near-term fortunes.

Anything other than this and the GBP CAD exchange rate is likely to settle back above the 1.8000 threshold. The outlook for the Loonie is now NEUTRAL and the GBP CAD exchange rate stands at 1.7859.

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