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Losses Forecast for Pound Sterling vs USD Exchange Rate, Gains vs AUD NZD CAD

August 28, 2015 - Written by Frank Davies

EUR Gains after German CPI: Pound and US Dollar Fluctuate Today



A higher than expected showing from this afternoon’s August Consumer Price Index data from Germany has helped keep the euro (currency : EUR) strong against the other major global currencies today. Analysts had been anticipating a year-on-year showing of 0.1%, so the result of 0.2% - (the same as July’s print) – helped strengthen the shared currency.

The statistic suggests that the European Central Bank’s €65bn per calendar month Quantitative Easing programme, which is set to continue at least until the back end of next year, is having its desired effect in raising asset prices in the euroland and steering the mainland European economy away from a potentially crippling bout of deflation. The Pound Sterling euro exchange rate dropped to as low as 1.3594 GBP EUR during early trade today and FX insiders forecast that this pair could potentially incur further losses in the short-to-medium term following these statistics from the Teutonic state.

US Data to Dictate Fed Rate Hike, USD/GBP, USD/EUR Exchange Rate Outlook



Elsewhere, a slightly below par showing from this afternoon’s US Personal Spending data for July hint a slight softening in the state of the real economy in the US. Analysts had been looking for a better figure than the 0.3% result which was published a short time ago to pave the way for a Federal Reserve interest hike next month. However, Dollar holders didn’t appear too perturbed by the result, with the Pound Sterling US Dollar exchange rate continuing to change hands in the 1.5300s GBP USD in the immediate aftermath of the release. The price action suggests that investors remain upbeat regarding the chances that Janet Yellen’s Fed will begin a fresh monetary policy tightening cycle.

AUD, NZD, CAD Currency News and Forecast Now: Will Pound Return to Best Rates?



Elsewhere, this morning’s session was decidedly risk-on as far as global equities markets were concerned, with London’s FTSE 100 opening up along with the euroland’s bourses. However, appetite for risk amongst investors has waned as the day has progressed. The move has led many analysts to predict that the Pound Sterling could record renewed gains against the high-yielding Australian Dollar (currency : AUD), New Zealand Dollar (currency : NZD) and Canadian Dollar (currency : CAD) when the market re-opens for business next week.
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