Exchange Rate Gains are Forecast for Pound to Canadian Dollar & Norwegian Krone Forex Rates

November 16, 2014 - Written by John Cameron

STORY LINK Exchange Rate Gains are Forecast for Pound to Canadian Dollar & Norwegian Krone Forex Rates

Oil prices and today's forex exchange rate forecasts for the British Pound to Canadian Dollar and the Norwegian Krone conversions.

The price of a barrel of crude oil tumbled to its lowest level since 2010 during Friday afternoon’s session, with Brent Crude falling to $77.52 earlier.

The Pound to Australian Dollar exchange rate converts -0.22 per cent lower at 1 GBP is 1.78728 AUD.
The Pound to Canadian Dollar exchange rate today is converting -0.06 per cent lower at 1.76756 GBP/CAD.
The Pound to Norwegian Krone exchange rate converts +0.02 per cent higher at 1 GBP is 10.58577 NOK.
The Pound to US Dollar exchange rate is -0.03 pct lower with a conversion rate of 1 GBP equals 1.56658 USD.

Canadian Dollar Exchange Rate Forecast: CAD Tumbles

In such a situation, analysts would ordinarily expect the currencies of large oil exporting nations including the Norwegian Krone (currency:NOK) and the Canadian Dollar (currency:CAD), however the Sterling Krone exchange rate has slumped by as much as 0.64% on the day, with the pair touching 10.5995 GBP NOK earlier in the day.

Meanwhile, the GBP CAD exchange rate has tumbled by over 1%, sending the pair down into the 1.7600s in the afternoon.

French And German GDP Data Pleases

The downward move in the wholesale price of crude was more than cancelled out by the news that the eurozone’s two premier economies had outperformed analysts’ expectation during the third quarter.

Friday morning’s data revealed that the German economy had expanded by 0.1% during the three months to the end of September, cancelling out Q2’s counterpart showing of -0.1%. Meanwhile, the latest showing from the French version of the numbers also pleased euro-watchers, revealing that the euroland’s number two economic superpower had also avoided sliding into recession.

Strong Eurozone GDP Data Helps Risk

Perhaps not surprisingly, the whole of eurozone GDP data, published a little later this morning, also beat expectations.

Perhaps the best news of the day, as far as investors holding euro-denominated assets were concerned, was that perennial eurozone struggler Greece has officially emerged from recession during the first three months of the year.

Q1 brought growth of 0.8%, while Q2 and Q3 saw the Greek economy expand by 0.3% and 0.7% respectively.

The news that mainland Europe’s economy appears to have turned a corner came as an encouraging development for Norway and Canada alike, suggesting that future levels of demand for oil are likely to be stronger than was previously anticipated from this major region.

Is Saudi Arabia Sending Oil Prices Lower?

However, oil analysts consider it likely that global oil prices will drop further thanks to recent comments and actions from leading oil producer Saudi Arabia.

Conventional wisdom states that the Arab nation controls the global oil price, releasing increased levels of reserves when the price is riding high and reigning in production when the price of a barrel of crude slides.

The current situation would ordinarily see Saudi limit the amount of oil it makes available to the world market, however official figures have pointed to no such action.

Jim Krane of Rice University Houston explains that Saudi’s actions may be driven by the desire to kill off competitor nation states; he observed earlier that, ‘they figure if prices go down and they help them go down a little bit, some of these people will be forced out of the business and the Saudis will be able to maybe scare some people away and retain their market share.’

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TAGS: Canadian Dollar Forecasts Currency Predictions Norwegian K Forecasts