Foreign Exchange Rate Outlook: Pound Sterling, Canadian Dollar, Swiss Franc

March 4, 2015 - Written by John Cameron

STORY LINK Foreign Exchange Rate Outlook: Pound Sterling, Canadian Dollar, Swiss Franc

Latest Exchange Rate Report for the Canadian Dollar, Pound Sterling and the Swiss Franc

The Canadian Dollar (currency:CAD) has been the star performer in the global currency markets this afternoon following the bank of Canada’s announcement that it was set to maintain its key interest rate at its current level of 0.75%.

The Pound Sterling to Canadian Dollar exchange rate dropped to as low as 1.9028 GBP/CAD during the early part of the North American session following the BoC’s decision to sit on its hands for another month at least.

Canadian Growth Data Informs BoC Decision

The announcement from the BoC is unlikely to lend the Loonie any sustained downward momentum as it was largely factored-in to pricing following yesterday’s go-ahead Canadian Gross Domestic Product data which pointed to a healthy year-on-year level of expansion of 2.8% in the nation’s economy.

Nonetheless, analysts forecast that the Loonie will perform moderately well against Sterling and the other major global tenders in the short-to-medium term.

Commodity Dollars Forecast to Improve

The BoC’s decision, which follows the Reserve Bank of Australia’s decision to hold its Cash Rate at 2.25% earlier this week, adds to the impression that the central banks of the export-led commodity economies may have put a hold on their recent loosening activity.

The news from Canada therefore prompted renewed support for the Australian Dollar (currency:AUD) and New Zealand Dollar (currency:NZD). GBP AUD fell to as low as 1.9508, while GBP NZD dipped to 2.0136 as a result of this relatively hawkish decision.

Swiss Franc Forecast Deteriorates

Elsewhere, there was also intrigue in the global currency markets this afternoon following the alleged leaking of a confidential letter from Switzerland’s Finance Minister; if reports are to be believed, the Swiss Fin Min Eveline Widmer-Schlumpf stated her desire for a reintroduction of a minimum exchange rate for the Franc following January’s scrapping of the existing EUR CHF minimum floor.

Commentators predict that these market whispers could serve to weaken support for the Swiss Franc moving forward.

Exchange Rate Today

The Pound to Canadian Dollar exchange rate is -1.26 pct lower with a conversion rate of 1 GBP equals 1.89414 CAD.
The Pound to Swiss Franc exchange rate is -0.44 pct lower with a conversion rate of 1 GBP equals 1.47005 CHF.
The Euro to Canadian Dollar exchange rate converts -1.54 per cent lower at 1 EUR is 1.37453 CAD.
The Euro to Swiss Franc conversion rate is -0.73 pct lower at 1.06678 EUR/CHF.

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TAGS: Australian Dollar Forecasts Canadian Dollar Forecasts Currency Predi Forecasts