Exchange Rate Predictions 2015: Pound Sterling, Euro, US Dollar and Canadian Dollar

January 9, 2015 - Written by John Cameron

STORY LINK Exchange Rate Predictions 2015: Pound Sterling, Euro, US Dollar and Canadian Dollar

Pound Sterling Exchange Rate Forecast: Disappointing PMIs Hurt GBP

The POUND STERLING (currency:GBP) has put in a tame performance during the first few trading days of 2015. The generally soft tone of UK PMI surveys during recent sessions has held back the Pound.

Looking forward, this morning’s domestic Manufacturing and Industrial Production data, alongside British trade figures for November, due for publication at the same time, have the potential to alter the value of Sterling.

Analysts forecast that the UK unit will trade on a NEUTRAL footing moving forward.

QE and Greece Forecast to Hold Back Euro Exchange Rate

The twin terrors of Greece and Quantitative Easing continue to menace the EURO (currency:EUR). Early-week inflation numbers from the euroland, which suggested overall price falls in the region, have sent the QE rumour mill into overdrive.

Investors won’t have to wait long to discover whether the European Central Bank will broaden the remit of its existing asset purchase scheme – 22nd January represents D-Day and the single currency is forecast to trade in a firmly NEGATIVE fashion in the lead up to this announcement. The current GBP EUR exchange rate is 1.2809.

US Dollar Exchaneg Rate Forecast Await NFP Data

A disappointing showing from the latest US weekly jobs numbers, published yesterday, held back the US DOLLAR (currency:USD) during late trading.

The latest labour market figures provided a poor precursor to today’s key Non-Farm Payrolls numbers. Holders of the Greenback will be looking out for a showing of over 200,000 for the eleventh month on the trot – anything less would be Dollar-negative.

The outlook for the Buck remains NEUTRAL TO POSITIVE and GBP USD stands at 1.5080.

Canadian Dollar Exchange Rate Forecast: Performance Governed by US Jobs Data

The near-term trajectory of the CANADIAN DOLLAR (currency:CAD) is largely dependent upon this afternoon’s US jobs numbers.

Worries persist regarding the future prospects of the export-driven Canadian economy thanks to the sharp drop in the price of a barrel of crude oil over recent months.

A weak showing from today’s American data would accentuate these concerns. The Loonie is expected to trade with a NEUTRAL bias moving forward and the GBP CAD exchange rate sits at 1.7880.

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TAGS: American Dollar Forecasts Canadian Dollar Forecasts Currency Predict Forecasts