Foreign Exchange News: Losses Forecast for Pound Sterling Canadian Dollar GBP CAD Exchange Rate

August 21, 2015 - Written by Ben Hughes

STORY LINK Foreign Exchange News: Losses Forecast for Pound Sterling Canadian Dollar GBP CAD Exchange Rate

FX UPDATE: Greek Election Concerns Impact GBP to EUR Exchange Rate Trading

Investors who believed that the long-running Greek debt saga had reached a temporary conclusion received a sharp nudge in the ribs yesterday afternoon. The news that Greek Prime Minister Alexis Tsipras was set to tender his resignation to the Hellenic state’s President in preparation for a snap General Election in his troubled nation caught many market participants on the back foot. The upshot saw the euro (currency : EUR) give up a large portion of the gains which it had enjoyed during early trading against the Pound Sterling, sending the GBP EUR exchange rate back up through the psychologically significant 1.4000 threshold.

Pound Sterling Forecast: GBP to Euro Could Move toward Best 1.50 Conversion Rate

The need had arisen for Tsipras’s ruling Syriza party to seek a fresh mandate from the Greek people thanks to the recent bailout vote in the Athens parliament saw 43 of the party’s 149 MPs vote against the proposed measures. Tsipras retains enviable levels of personal popularity amongst the Hellenic state’s votes in spite of what was ostensibly a painful capitulation in his bail-out negotiations with the Brussels Group. However, political analysts forecast that Syriza will struggle to win as many seats as they did in January’s election and a more disparate Greek parliament could prove harder to cajole into further austerity measures. The upshot for the euro (currency : EUR) could prove to be catastrophic, with analysts predicting that the Pound Sterling euro exchange rate has the potential to climb back into the middle part of the 1.4000 to 1.5000 GBP EUR trading range sooner rather than later.

UK Public Sector Net Borrowing Data Predicted to Drive GBP to EUR, USD Movement Today

Data highlights for today’s session include the latest UK public sector borrowing data, due out at 0930hrs BST and Consumer Price Index inflation numbers from Canada at 1330hrs BST. Analysts forecast downside movement for the Pound Sterling Canadian Dollar exchange rate if the July inflation figures from the North American state point to an increase in the annualised pace of price rises, as per expectations. However, a break below the psychologically important two to one exchange rate remains unlikely for GBP CAD while wholesale oil prices remain at their current rock bottom level.

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