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Foreign Currency FX Exchange Rate Forecast for Pound Sterling versus EUR USD CAD

July 19, 2015 - Written by John Cameron

The POUND STERLING (currency:GBP) has convincingly outperformed the other sixteen most actively traded global currencies during today’s session in the markets thanks to the ongoing effect of Bank of England Governor Mark Carney’s comments of last night. The Top Man at the Old Lady of Threadneedle Street told listeners that he expects UK interest rates to be on the way up ‘around the turn of the year’ and the Pound has prospered as a consequence. The UK unit is forecast to trade on a NEUTRAL TO POSITIVE footing moving forward.

The EURO (currency:EUR) should have benefitted from the news earlier this week that Greek lawmakers had voted through the necessary legislation for a controversial third debt bailout. However, the European Central Bank’s revelation that it will be ‘front-loading’ its Quantitative Easing programme and purchasing an increased volume of bonds during the relatively quiet Summer months has held back the shared currency on the day. Greece has escaped an immediate debt meltdown but analysts forecast that the ‘Athens problem’ is far from resolved just yet. The outlook for the euro is NEGATIVE and the GBP EUR exchange rate stands at 1.4402.

The US DOLLAR (currency:USD) has continued its mini-recovery against the Pound Sterling during recent sessions. The Buck has climbed following Federal Reserve Chair Janet Yellen’s suggestion that a US interest rate hike is ‘likely’ to happen this side of Christmas. This afternoon’s US data, which showed that the domestic rate of inflation increased from 0% last month is likely to provide a little additional support for the Greenback. The Dollar is expected to trade on a NEUTRAL TO POSITIVE footing moving forward and the GBP USD exchange rate stands at 1.5632.

The CANADIAN DOLLAR (currency:CAD) has continued to reel from the midweek news that the Bank of Canada had cut its key interest rate to a fresh record low of 0.50%. The move against the Loonie which followed has seen the Pound Sterling Canadian Dollar exchange rate jump through the two to one barrier for the first time in several years. However, analysts forecast that, with this afternoon’s Canadian data showing that inflation in the North American state stands at a year-on-year 2.3%, another rate cut from the BoC is highly unlikely. The outlook for the Loonie is NEUTRAL TO NEGATIVE and the GBP CAD exchange rate stands at 2.0303.

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