British Pound Exchange Rate Forecast: GBP to Euro, Canadian Dollar and US Dollar

April 7, 2015 - Written by John Cameron

STORY LINK British Pound Exchange Rate Forecast: GBP to Euro, Canadian Dollar and US Dollar

Exchange Rate Forecasts for the Pound Sterling (GBP), Euro (EUR), US Dollar (USD) and the Canadian Dollar (CAD)

Sunday’s confirmation from Greece’s Finance Minister Yanis Varoufakis that his debt-addled nation will be meeting its 9th April debt repayment to the International Monetary Fund helped the EURO (currency:EUR) climb against the Pound Sterling during light trading yesterday.

Market participants’ fears that Athens might not be able to make the €450m commitment had held back the single currency, but the outlook for the Euro remains firmly NEGATIVE.

Pound Sterling Forecast: General Election in Focus

The POUND STERLING (currency:GBP) continued to perform tamely during yesterday’s session thanks to ongoing concerns regarding the effect which the UK General Election, which takes place in 30 days, might have on the domestic economy. A Conservative majority remains a possibility, but could hit the Pound hard as investors would view such a result as increasing the likelihood of a UK exit from the European Union.

Meanwhile, another uneasy coalition government could leave the UK economy without strong stewardship.

The Pound Sterling is forecast to trade on a NEUTRAL TO NEGATIVE footing in the lead-up to the popular ballot.

Canadian Dollar Exchange Rate Forecast: CAD Needs a Strong Jobs Figure

The CANADIAN DOLLAR (currency:CAD) received a fillip late last week when March’s US employment data came in well below the expected level.

The fact that the January and February job creation numbers were also downwardly revised caused market participants to push back their expectations regarding the timing of the next US interest rate hike, helping the Loonie.

The Canadian tender now badly needs a strong showing from Friday’s domestic jobs numbers to build on this forward momentum.

The GBP CAD exchange rate stands at 1.85629 and the Loonie is forecast to trade with a NEUTRAL TO NEGATIVE bias moving forward.

US Dollar Exchange Rate Forecast: FED Minutes to Come

The US DOLLAR (currency:USD) could be in for a rough ride during the remainder of this week’s session as investors continue to price-in last Friday’s poor US jobs figures.

The closely-monitored numbers revealed that, for the first time since early last year, less than 200,000 jobs were created in the world’s premier economy last month.

Given that the US Federal Reserve recently stated that it wanted to see a ‘considerable improvement’ in the state of the US labour market before it would countenance a domestic interest rate hike, the effect of the numbers is likely to be marked.

Tomorrow evening’s Fed minutes will be key, in the meantime expect the Buck to trade on a NEUTRAL TO NEGATIVE footing.

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