FX Exchange Rate Forecasts for Pound Sterling EUR USD CAD Today: UK Deficit Narrows

July 9, 2015 - Written by John Cameron

STORY LINK FX Exchange Rate Forecasts for Pound Sterling EUR USD CAD Today: UK Deficit Narrows

GBP/USD, GBP/CAD Exchange Rates Gain on Trade Data

The Pound Sterling to US Dollar (GBP/USD) and Pound Sterling to Canadian Dollar (GBP/CAD) exchange rates both recorded gains over the course of the European session as the UK's trade deficit was shown to have narrowed by considerably more than expected. This sign that the UK economic recovery is progressing well lent Sterling support and could bolster BoE interest rate hike expectations.

Earlier...

GBP to EUR, USD, AUD Exchange Rates Decline Today

The POUND STERLING (currency:GBP) took a hammering in the markets during yesterday’s trading session as investors priced in developments announced in the Chancellor’s Summer Budget. The news that the new Conservative government in the UK is slowing the pace of benefit cuts hurt Sterling – today’s Bank of England monetary policy announcement is unlikely to be market moving, so the forecast for Sterling is NEUTRAL.

Euro (EUR) Broadly Stronger as Greece Requests Third Bailout - EUR/GBP, EUR/USD Gain

The EURO (currency:EUR) recorded strong gains yesterday as investors took heart from the news that Greece had officially requested a third bailout from the Brussels Group. However, problems persist for the shared currency, as evidenced by the publication of a report revealing that, for the first time, a majority of city analysts believe that Greece will leave the euro. The outlook for the single currency remains NEGATIVE and the GBP

EUR exchange rate stands at 1.3870.

Foreign Exchange Forecast: US Dollar (USD) Softer as Fed Minutes Show Rate Hike Delay

The US DOLLAR (currency:USD) firmed against the Pound Sterling following the publication of the minutes of the June Federal Reserve FOMC monetary policy meeting last night. The notes revealed that many policymakers wanted to see more signs of stronger growth before countenancing a tightening of policy and that further Fed officials had warned against premature rate rise. The underlying message appeared to by that a US rate increase during 2015 is by no means guaranteed; for this reason, the outlook for the Buck is NEUTRAL TO NEGATIVE.

The GBP USD exchange rate stands at 1.5355.

The CANADIAN DOLLAR (currency:CAD) has struggled to assert itself against the other sixteen most actively traded global currencies following last weeks’ below par local GDP growth data. The key ecostats have added further fuel to rumours that the Bank of Canada will cut its key lending rate again before the end of the year. Look out for this afternoon’s domestic housing data to provide the Loonie with renewed direction. In the meantime, analysts forecast that CAD will trade on a NEUTRAL TO NEGATIVE footing. The Pound Sterling Canadian Dollar exchange rate stands at 1.9552.

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