Exchange Rate Forecast for Pound against Euro and Canadian Dollar

May 26, 2015 - Written by John Cameron

STORY LINK Exchange Rate Forecast for Pound against Euro and Canadian Dollar

Not for the first time in recent weeks, it took news from the United States to prove the Pound Sterling euro exchange rate (GBP EUR) with a forward push. The pair had enjoyed a stellar session on Thursday, surging through the 1.4100 threshold for the first time since 12th March. Indeed, there have only been two days since 2007 which have seen the GBP EUR exchange rate trade at a higher level.

However, early trading saw the GBP EUR exchange rate peel back to trade down to as low as 1.3960 as speculators ‘took profit’ on the pair. Friday afternoon’s session has brought a considerable turnaround for the pair following the publication of a keynote data release in the US. Analysts had been expecting the latest American Consumer Price Index data to reveal yet another drop in the pace of US price rises. It therefore came as a surprise when the result showed that US inflation had remained at an annualised 1.8% last month.

The move which followed saw the euro US Dollar exchange rate slump from an intraday high of 1.1208 all the way down to a relatively lowly 1.0999 as investors factored-in a higher percentage chance that the US Federal Reserve will be increasing its headline interest rate this side of Christmas. The relative weakening of the euro (currency:EUR) against the Dollar manifested itself as significantly higher rates for GBP EUR.

Elsewhere, the latest Canadian inflation figures, published at the same time as the US figures, printed at a slightly lower level than had been expected and the Loonie gave up ground as a consequence. Analysts now forecast that the Pound Sterling may gain further positive momentum against the Canadian Dollar during next week’s session thanks to continued subdued levels for the global oil price.

International Money Transfer? Ask our resident FX expert a money transfer question or try John's new, free, no-obligation personal service! ,where he helps every step of the way, ensuring you get the best exchange rates on your currency requirements.

TAGS: Canadian Dollar Forecasts Currency Predictions Euro Forecasts Euro Forecasts