Gains Forecast for Pound to Canadian Dollar and Norwegian Krone Exchange Rates

November 27, 2014 - Written by John Cameron

STORY LINK Gains Forecast for Pound to Canadian Dollar and Norwegian Krone Exchange Rates

Our foreign exchange rate forecasts for the Pound Sterling (currency:GBP), Canadian Dollar (currency:CAD) and the Norwegian Krone (currency:NOK)

TThe US economy is moving forward at quite a clip and the OECD forecasts a continued improvement in the state of the global economy over coming years.

Meanwhile, analysts agree that the world more than likely reached ‘peak oil’ several years ago and yesterday’s data from the States revealed that inventories of commercial US crude oil increased by almost 2 million barrels compared with the previous wee – a move which would ordinarily push prices higher.

So why have global oil prices dropped to their lowest level for over 4 years during the past 24hrs, with the price of a barrel of Brent Crude plunging to as low as $77.67 during trading yesterday?

The Pound to Australian Dollar exchange rate is -0.66 pct lower with a conversion rate of 1 GBP equals 1.83833 AUD.
The Pound to Canadian Dollar conversion rate is -0.22 pct lower at 1.77298 GBP/CAD.
The Pound to Euro exchange rate is -0.02 pct lower at 1.26237 GBP/EUR.
The Pound to Norwegian Krone exchange rate today is converting +0.61 per cent higher at 10.85413 GBP/NOK.
The Pound to Dollar exchange rate is -0.16 pct lower with a conversion rate of 1 GBP equals 1.57625 USD.

Market Awaits OPEC Announcement

Today brings the hotly-anticipated meeting of the OPEC group of oil producers and the move in wholesale oil prices yesterday has been driven by this major event.

The oil market is far from the straightforward and transparent exchange which some investors believe it to be – fundamentals count for little when the market is driven by a few major suppliers.

Analysts predict that the US is set to overtake Saudi Arabia as the world’s leading oil extractor sooner rather than later, but for now the Saudis still hold the number one position, giving them a strong position in setting prices.

Market whispers suggest that the Saudis have stubbornly refused to constrict their supplies in order to force up prices in recent weeks and the same rumours hint that the move has been jointly agreed with the United States in an effort to suppress Moscow.

Comments from Russia’s Finance Minister earlier this week suggesting that the recent drop in wholesale oil prices had already cost his nation’s economy some $100bn lent credence to this suggestion.

Gains Forecast For GBP NOK & GBP CAD

In any case, yesterday’s renewed downward move for oil prices hints that oil speculators feel that today’s OPEC meeting will not bring any reduction in supply from the world’s major players.

If this is indeed the upshot of today’s get-together, then there is likely to be significant movement for some of the world’s leading currency pairs. Analysts forecast that the Norwegian Krone (currency:NOK) and Canadian Dollar (currency:CAD) could be particularly hard-hit , with gains projected for both the GBP NOK and the GBP CAD exchange rates.

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TAGS: Canadian Dollar Forecasts Currency Predictions Norwegian K Forecasts