March 29, 2015 - Written by John Cameron
STORY LINK Exchange Rate Forecast for Pound Sterling, Euro, US Dollar and Canadian Dollar
Latest Exchange Rate Predictions and Forecasts for the British Pound (GBP), Euro (EUR), US Dollar (USD) and the Canadian Dollar (CAD)
The POUND STERLING (currency:GBP) held its ground towards the end of last week.
The UK unit was buoyed by the morning release of a strong set of February domestic Retail Sales data which pointed to a year-on-year increase in shop sales of some 5.1%.
Investors appear to be getting over the realisation that the Bank of England’s next policy move may be an interest rate cut, rather than a hike which had previously been considered as being nailed-on.
The Pound is now forecast to trade with a NEUTRAL bias moving forward. Euro Exchange Rate Forecast
The EURO (currency:EUR) softened against both the Pound and the Dollar as investors reacted to US Federal Reserve policysetter Dennis Lockhart’s assertion that the Greek debt crisis remains a real and present danger to the global economic recovery.
A slightly stronger than anticipated German GfK Consumer Confidence Survey yesterday morning had ensured that the shared currency had posted a decent performance earlier on, but commentators continue to forecast that the European Central Bank’s ongoing Quantitative Easing programme will sap the single currency of support moving forward.
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Analysts predict that the euro will perform on a NEGATIVE footing into the medium term. Dollar Exchange Rate Forecast
The US DOLLAR (currency:USD) received a boost when Federal Reserve policymaker Dennis Lockhart
suggested that the Fed may be set to increase its key interest rate as soon as June.
Futures markets had priced-in December as the most likely month for a Fed hike, so Lockhart’s comments favoured the Buck.
A mixed set of weekly jobs numbers had a neutral effect on the Greenback, but tomorrow’s Michigan Sentiment Index result could have the reverse effect.
The outlook for the Dollar is now NEUTRAL TO POSITIVE. Canadian Dollar (CAD) Exchange Rate Forecast
The CANADIAN DOLLAR (currency:CAD) outperformed all of the other major global tenders in spite of Bank of Canada Governor Stephen Poloz’s assertion that he anticipates a weak set of Q1 GDP growth data thanks to poor domestic climactic conditions and the drop in oil prices.
A stronger than anticipated set of weekly Initial Jobless Claims data from the States helped the Canadian unit by hinting that America’s economy continues to perform well.
The Canadian Dollar forecast is NEUTRAL TO POSITIVE.
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