Pound Sterling Forecast: GBP Exchange Rate to Edge Higher, VIX Spikes

December 2, 2014 - Written by John Cameron

STORY LINK Pound Sterling Forecast: GBP Exchange Rate to Edge Higher, VIX Spikes

Currency News UK presents our latest Pound forecast

The closely-monitored VIX ‘Fear Index’ spiked during yesterday’s session as investors factored-in a disappointing showing from the latest set of Chinese manufacturing figures.

VIX has been plumbing the depths, holding just above the 12.00 threshold during Friday trading. However, the early part of yesterday’s American session saw it climb drastically to break the 14.50 barrier. The move has led analysts to alter their near-term forecasts for several leading global currencies.

The Pound to Australian Dollar exchange rate converts -0.01 per cent lower at 1 GBP is 1.85549 AUD.
The Pound to Canadian Dollar exchange rate is +0.04 pct higher with a conversion rate of 1 GBP equals 1.78208 CAD.
The Pound to Euro conversion rate is -0.1 pct lower at 1.26055 GBP/EUR.
The Pound to New Zealand Dollar conversion rate is +0.03 pct higher at 2.00154 GBP/NZD.
The Pound to US Dollar exchange rate converts -0.3 per cent lower at 1 GBP is 1.56865 USD.

OK UK Mortgage Data Helps Pound Exchaneg Rate

The Pound Sterling recorded gains against most of the other major tenders during yesterday’s trading, following the publication of a slightly ‘less bad than expected’ data set. October’s official UK Mortgage Approval figures showed a drop from September’s counterpart print to 59,400. However, the consensus expectation amongst economist had been that the result would come in at 59,000, with experts predicting the Bank of England’s ongoing policy of restricting riskier secured lending causing the dip. Stuart Bennett of Santander explained his view on Sterling earlier, stating that, ‘the Pound still seems to be something which in fundamental terms could be a buy. You’ve still got an economy that is doing OK.’

Iron Ore Price Drop Hurts Aus Dollar Exchange Rate

The Mortgage Approvals numbers, in tandem with the sharp drop in global appetite for risk, sent the Pound Sterling Australian Dollar exchange rate up to close to its near-term peak above the 1.8500 level late on. Another move lower for global iron ore prices on the day provided another reason for pessimism for investors holding Aussie-denominated assets. The fact that commodities analysts now forecast that prices of the key constituent of steel are likely to remain subdued for a decade could weigh heavily on the Australian Dollar moving forward. Trading rates above the 1.9000 threshold can not entirely be ruled out.

Investors Await North American Data

Looking ahead, today’s session brings a relatively light data schedule, with no tier one releases penned in. However, tomorrow afternoon’s session brings more interest with the latest Bank of Canada (BoC) monetary policy decision and an ISM Non-Manufacturing survey in the US. Recent Canadian economic statistics have been encouraging, so the BoC statement may prove helpful to the Loonie. Thing have been going a little less well across the border in the United States.

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TAGS: Australian Dollar Forecasts Canadian Dollar Forecasts Currency Predi Forecasts