Today?s Currency News British Pound Sterling Exchange Rate Forecast vs EUR USD CAD

August 27, 2015 - Written by John Cameron

STORY LINK Today?s Currency News British Pound Sterling Exchange Rate Forecast vs EUR USD CAD

Pound Sterling News Today: BoE Rate Hike Bets Pushed Back, GBP to EUR, NZD, AUD Trending Lower

The POUND STERLING (currency : GBP) struggled to assert itself against the high-yielding Commodity Dollars during yesterday’s session as investors regained their collective nerve. The UK unit continues to be weighed down by market participants’ expectations that, given ongoing fears regarding the Chinese economy, the Bank of England may now be a year away from an interest rate hike. Tomorrow morning’s domestic Q2 Gross Domestic Product data will be seminal for the Pound, in the meantime Sterling is forecast to trade on a NEUTRAL TO NEGATIVE footing.

FX ALERT: Euro Gains on US Dollar, Pound Sterling Today

The EURO (currency : EUR) continued to outperform both the Pound and the Greenback yesterday. Now that Greece’s debt woes have been staved off for another few years following its agreement the Troika on a third bailout deal, institutional investors appear happy to park their funds overnight with the European Central Bank (ECB). The ECB’s ongoing €65bn per calendar month Quantitative Easing programme remains an anchor for the single currency, but the outlook for EUR is now NEUTRAL TO NEGATIVE.

The Pound euro exchange rate stands at 1.3621.

US Dollar Exchange Rate Fluctuates; Movement Forecast

Support for the US DOLLAR (currency : USD) surged during yesterday’s afternoon session as investors factored-in an apparent improvement in global appetite for risk and a strong set of US Durable Goods Orders data. However, given comments from New York Federal Reserve President William Dudley, the Buck may now be overbought. Dudley stated yesterday that the case for a US interest rate hike next month is now ‘less compelling’ than it was a few weeks ago.

The Pound Sterling US Dollar exchange rate sits at 1.5480 and the outlook for the Buck is NEUTRAL.

Currency Market Predictions: Pound Falls from 8-Year Best against Sterling

The CANADIAN DOLLAR (currency : CAD) enjoyed a renaissance against most of the other sixteen most actively traded global currencies yesterday. The Loonie benefitted from a slight uptick in Brent Crude futures and a strong set of US Durable Goods Orders for July also helped its cause. The main hazard for CAD moving forward comes in the form of this afternoon’s Michigan Confidence survey in the US – a below-par showing from this key gauge of American sentiment would set the Canadian unit back.

Analysts forecast that the Loonie will trade on a NEUTARL TO NEGATIVE footing moving forward and the GBP CAD exchange rate stands at 2.0629.

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