Renewed Gains Forecast for Pound Sterling GBP vs AUD NZD CAD Commodity Dollars

September 16, 2015 - Written by John Cameron

STORY LINK Renewed Gains Forecast for Pound Sterling GBP vs AUD NZD CAD Commodity Dollars

Pound to Australian Dollar, US Dollar, Canadian Dollar Exchange Rates Higher Today after Employment Data

The Pound Sterling (currency : GBP) has enjoyed a strong trading session so far today, with the GBP EUR exchange rate breaking higher to 1.3763 and the Pound Dollar exchange rate jumping to an intraday peak of 1.5453 GBP USD.

The UK unit’s progress has been held back during recent months thanks to economists’ concerns regarding a persistent ‘productivity problem’ in the domestic economy which was impacting on the level of wage growth for Britain’s workforce. However, official figures published this morning, which revealed that last month saw the wages of UK employees expanded at their fastest pace since the immediate aftermath of the 2008 /09 global financial crisis, have helped alleviate these fears. The numbers showed that the rate of pay for the average Briton in employment, (disincluding bonuses), increased by an annualised 2.9% in the three months to the end of July.

Will Unemployment Decline Prompt Rate Hike? GBP Forecast Higher

Dominic Bryant of BNP Paribas welcomed the data earlier, stating that any employment numbers, ‘are particularly important as they suggest that some softer outturns in recent months were temporary and that the trend remains one of gradual strengthening.’ He went on to observe that, ‘a recovery in employment, a fall in the unemployment rate and a further rise in wage growth supports the view that the BOE will need to start removing some policy accommodation sooner rather than later.’ FX insiders forecast that the Pound Sterling will enjoy strong levels of support against the other sixteen most actively traded global currencies during coming months as a result.

Pressure Predicted for AUD, NZD, CAD Conversion Rate Trading

Elsewhere, the high-yielding Commodity Dollars may come under renewed selling pressure over the next 48hrs thanks to last night’s comments from the World Bank. The missive predicted that developing world economies will be hard hit by the first US Federal Reserve interest rate increase, which analysts still expect to be announced before the end of the year. Such an outcome will hurt the economies of Australia, New Zealand and Canada, which remain heavily dependent on the export of their plentiful raw materials to emerging nations. For this reason, many analysts forecast that the Pound Sterling may enjoy renewed gains against the AUD, NZD and CAD before the weekend market shutdown.

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