Today's Exchange Rate Forecasts: British Pound (GBP), Euro (EUR), US Dollar (USD) and Canadian Dollar (CAD)

November 19, 2014 - Written by John Cameron

STORY LINK Today's Exchange Rate Forecasts: British Pound (GBP), Euro (EUR), US Dollar (USD) and Canadian Dollar (CAD)

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

This morning’s Bank of England (BoE) minutes was closely monitored by holders of the POUND STERLING (currency:GBP).

Recent comments from the UK central bank’s policymakers have engendered the impression that the BoE is actively encouraging a weaker Pound. If today’s memos confirmed this, perhaps by ruling out a tightening of domestic monetary policy for a set timeframe, then analysts forecast that the pound will perform on a NEUTRAL TO NEGATIVE footing moving forward.

The Pound to Australian Dollar exchange rate today is converting +1.15 per cent higher at 1.81496 GBP/AUD.
The Pound to Canadian Dollar exchange rate converts +0.42 per cent higher at 1 GBP is 1.77657 CAD.
The Pound to Euro exchange rate today is converting +0.17 per cent higher at 1.24914 GBP/EUR.
The Pound to New Zealand Dollar exchange rate today is converting +0.78 per cent higher at 1.99220 GBP/NZD.
The Pound to US Dollar exchange rate today is converting +0.25 per cent higher at 1.56659 GBP/USD.

Euro Exchange Rate Forecast: EUR Improves

The EURO (currency:EUR) enjoyed an unexpectedly positive session in the global currency markets yesterday.

A better than anticipated German ZEW Sentiment Index, published mid-morning, helped investors to forget the decidedly dovish monetary policy stance currently adopted by the European Central Bank (ECB).

Look out for tomorrow morning’s German and whole of eurozone PMI Services sector data to provide the single currency with renewed direction.

The outlook for the euro remains NEGATIVE and the GBP EUR exchange rate currently sits at 1.2488.

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

The US DOLLAR (currency:USD) could see significant price action later today when the minutes of October’s Federal Reserve policy meeting are published.

Following the release of data earlier this month which showed that, for the ninth month on the trot, over 200,000 jobs had been added to the payroll of the world’s premier economy, it may be hard for the Fed not to strike a positive note.

If the memos reveal plans for a near-term interest rate hike, then look for GBP USD to drop further; the pair currently sits at 1.5652 and the Greenback is forecast to trade with a POSITIVE bias moving forward.

Canadian Dollar (CAD) Exchange Rate Improves

The CANADIAN DOLLAR (currency:CAD) was one of the few global tenders to record a loss against Sterling yesterday.

The Loonie finally succumbed to the ongoing downshift in global oil prices, which saw the price of a barrel of crude drop to its lowest level for some four years earlier in the week.

Investors holding CAD-denominated assets will be looking for tomorrow’s US inflation data to come in below expectations in order to take the heat off the Federal Reserve to increase interest rates.

Anything other than this and the Loonie could endure further losses. The forecast for the Canadian unit is NEUTRAL TO NEGATIVE and GBP CAD stands at 1.7704.

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