Pound, Euro, Dollar and Canadian Dollar: Exchange Rate Forecast for GBP EUR USD CAD

December 22, 2014 - Written by John Cameron

STORY LINK Pound, Euro, Dollar and Canadian Dollar: Exchange Rate Forecast for GBP EUR USD CAD

Pound Sterling Forecast Hit by UK Inflation Data

With little UK data of note penned in for release during the next week, the performance of the POUND STERLING (currency:GBP) is likely to be weighed down by last Tuesday’s lower than anticipated domestic inflation data for November.

Don’t expect tomorrow morning’s finalised version of the Q3 UK Gross Domestic Product numbers to throw up any surprises, so Sterling is forecast to trade with a NEUTRAL bias heading in to the Christmas period.

Exchange Rates Today (21/12/2014)

The Pound to Australian Dollar exchange rate today is converting -0.26 per cent lower at 1.91854 GBP/AUD.
The Pound to Canadian Dollar exchange rate converts +0.03 per cent higher at 1 GBP is 1.81324 CAD.
The Pound to Euro exchange rate is +0.04 pct higher with a conversion rate of 1 GBP equals 1.27833 EUR.
The Pound to New Zealand Dollar exchange rate today is converting -0.1 per cent lower at 2.01465 GBP/NZD.
The Pound to US Dollar conversion rate is -0.01 pct lower at 1.56245 GBP/USD.

Euro Exchange Rate Forecast: EUR Sinks Following Putin Comments

The EURO (currency:EUR) continues to face multiple threats.

Although the language used by Russian leader Vladimir Putin during his end of year press conference last week was generally conciliatory in tone, he once again reminded Western Europe that it remains totally dependent on a continuing flow of natural gas from Moscow.

Monday afternoon’s whole of eurozone Consumer Confidence survey could prompt price action for the single currency; in the meantime, expect the EUR to continue to trade on a NEGATIVE footing.

Dollar Forecast to Outperform

The US DOLLAR (currency:USD) has once again put in a positive performance against the other major global tenders during the past seven days.

The Buck has now recorded gains against a trade-weighted basked of currencies for the eighth time in the past nine weeks.

The forward movement for the Greenback towards the end of last week was driven by the latest Federal Reserve policy decision which saw the US central bank drop its guidance that interest rates would remain low for a ‘considerable time’.

The outlook for the Buck remains NEUTRAL TO POSITIVE.

Inflation Data Weighs Down the Canadian Dollar Exchange Rate

The CANADIAN DOLLAR (currency:CAD) suffered a bout of sustained selling pressure during Friday afternoon’s trading session.

The shift out of Loonie-denominated assets was triggered by a weaker than anticipated showing from November’s Canadian inflation numbers.

The release takes the pressure off the Bank of Canada to consider a near-term interest rate hike, making Canada a less attractive venue for international investors.

However, any future losses for the Loonie may be limited by the pronounced improvement in America’s economic performance. The GBP CAD exchange rate sits at 1.8255 and the outlook for the CAD is NEUTRAL TO NEGATIVE.

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