Exchange Rate Forecasts: Pound Sterling, Euro, US Dollar and the Canadian Dollar

September 2, 2015 - Written by John Cameron

STORY LINK Exchange Rate Forecasts: Pound Sterling, Euro, US Dollar and the Canadian Dollar

Pound Sterling Exchange Rate is Forecast to Decline on Damp Investor Sentiment

With the exception of the high-yielding Commodity Dollars, the POUND STERLING (currency : GBP) has been the worst-hit of the sixteen most actively traded global currencies by the current slump in investor sentiment. A month ago, following forward guidance from Bank of England (BoE) Governor Mark Carney, investors were factoring in a UK interest rate hike for ‘the turn of the year’. The slump in appetite for risk in Asia has postponed the next BoE tightening of monetary policy in the minds of market participants. For this reason, the forecast for Sterling is NEUTRAL TO NEGATIVE.

German unemployment numbers, published yesterday morning, came out below expectations, but that wasn’t enough to stop the EURO (currency : EUR) registering gains against the Pound Sterling. The overall level of German joblessness remained statistic, but the net job creation element of the data disappointed. As a relatively low-yielding tender, the single currency continues to benefit from the prevailing risk-off trading environment. The euro is forecast to trade on a NEUTRAL TO NEGATIVE footing moving forward and the GBP EUR exchange rate sits at 1.3625.

The US DOLLAR (currency : USD) strengthened significantly against the Pound Sterling yesterday. Investors still believe that the US Federal Reserve will be increasing its headline interest rate before the end of the year. However, the collapse in global sentiment over the past two weeks has now made this very far from a foregone conclusion. Comments from US policymakers at the Jackson Hole economic symposium, which took place over the weekend, reveal an array of views on the timing of an interest rate hike, with one leading policymember even publically calling for a further loosening in policy. For this reason, the outlook for the Buck is NEUTRAL TO NEGATIVE. The GBP USD exchange rate sits at 1.5341.

The CANADIAN DOLLAR (currency : CAD) received a firm shove in the right direction yesterday afternoon, when June Gross Domestic Product data for the Canadian economy significantly beat expectations. A year-on-year showing of 0.6% was well ahead of the 0.4% anticipated and the Loonie gained against Sterling as a result. On the debit side, the Canadian tender continues to be weighed down by bargain basement level wholesale crude oil prices. The outlook for the Loonie is NEUTRAL TO NEGATIVE and the Pound Sterling Canadian Dollar exchange rate stands at 2.0210.

Latest Exchange Rates Today 02/09/2015

The Pound to Australian Dollar conversion rate is +0.05 pct higher at 2.18393 GBP/AUD.
The Pound to Canadian Dollar conversion rate is -0.1 pct lower at 2.02606 GBP/CAD.
The Pound to Swiss Franc exchange rate converts +0.27 per cent higher at 1 GBP is 1.47334 CHF.
The Pound to Chinese Yuan conversion rate is -0.32 pct lower at 9.70791 GBP/CNY.
The Pound to Czech Koruna exchange rate is +0.09 pct higher with a conversion rate of 1 GBP equals 36.64808 CZK.
The Pound to Euro exchange rate today is converting +0.11 per cent higher at 1.35611 GBP/EUR.
The Pound to Hong Kong Dollar exchange rate is -0.18 pct lower with a conversion rate of 1 GBP equals 11.83731 HKD.
The Pound to Israeli Sheqel exchange rate today is converting -0.04 per cent lower at 6.00545 GBP/ILS.
The Pound to Japanese Yen conversion rate is +0.07 pct higher at 183.31904 GBP/JPY.
The Pound to Mexican Peso conversion rate is -0.33 pct lower at 25.86307 GBP/MXN.
The Pound to Norwegian Krone conversion rate is -0.24 pct lower at 12.66952 GBP/NOK.
The Pound to New Zealand Dollar exchange rate is -0.33 pct lower with a conversion rate of 1 GBP equals 2.41348 NZD.
The Pound to Polish Zloty conversion rate is -0.06 pct lower at 5.75507 GBP/PLN.
The Pound to Swedish Krona exchange rate today is converting -0.05 per cent lower at 12.89768 GBP/SEK.
The Pound to Singapore Dollar conversion rate is +0.15 pct higher at 2.16585 GBP/SGD.
The Pound to Turkish Lira exchange rate today is converting +0.38 per cent higher at 4.50393 GBP/TRY.
The Pound to US Dollar exchange rate converts -0.18 per cent lower at 1 GBP is 1.52739 USD.
The Pound to South African Rand conversion rate is +0.26 pct higher at 20.59318 GBP/ZAR.

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TAGS: Pound Canadian Dollar Forecasts Pound Dollar Forecasts Pound Euro Forecasts