Today?s British Pound Sterling Exchange Rate Outlook vs EUR USD CAD

October 22, 2015 - Written by John Cameron

STORY LINK Today?s British Pound Sterling Exchange Rate Outlook vs EUR USD CAD

GBP/EUR Conversion Rate Hit 1.36 after UK Government Borrowing Fell

Official statistics showing that the total level of UK government borrowing had fallen during the first half of the financial year provided support for the POUND STERLING (currency : GBP) during yesterday’s session.

The drop of almost 14% to £46.3bn from the Public Sector Net Borrowing excluding public sector banks figure compared to the year before suggested that Britain’s fiscal position is improving.

The outlook for Sterling is now NEUTRAL TO POSITIVE.

EUR/GBP Exchange Rate Dropped to 0.73 ahead of ECB Rate Decision

The EURO (currency : EUR) underperformed Sterling yesterday, sending the Pound euro exchange rate back up into the 1.3600s.

Concerns that the European Central Bank (ECB) may be set to widen the scope of its Quantitative Easing program at tomorrow’s policy announcement continue to hold back the shared currency; meanwhile these fears were accentuated by numbers published yesterday morning which showed that whole of Eurozone government debt to GDP ratio slightly increased during 2014.

The single currency is forecast to trade on a NEUTRAL TO NEGATIVE footing in the short term. The GBP EUR exchange rate stands at 1.3610.

GBP/USD Conversion Rate Reached 1.54 despite Positive US Mortgage Applications Data

The near-term performance of the US DOLLAR (currency : USD) hinges on this afternoon’s domestic weekly jobs numbers.

Analysts are anticipating a slight increase in both the Initial Jobless Claims and the Continuing Claims elements, meaning the current shift out of Dollar-denominated assets might be set to continue.

However, the big event for the Buck this month is still to come – the Greenback is forecast to trade with a NEUTRAL TO NEGATIVE bias ahead of next week’s key Federal Reserve monetary policy announcement. GBP USD stands at 1.5460.

GBP/CAD Rallied to 2.02 as Oil Prices Continue to Drag

The CANADIAN DOLLAR (currency : CAD) benefitted from yesterday afternoon’s decision from the Bank of Canada to maintain its headline interest rate at its current level of 0.50%.

However, the Loonie may be weighed down in the medium term by Canadian policymakers’ assertion that ‘material slack persists in the Canadian economy.’

With global oil prices remaining at rock bottom levels, the outlook for the Canadian unit is NEUTRAL TO NEGATIVE. The Pound Sterling Canadian Dollar exchange rate stands at 2.0210 GBP CAD.

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TAGS: American Dollar Forecasts Canadian Dollar Forecasts Euro Forecasts Pound Ster Forecasts