British Pound Sterling Exchange rate Forecast vs EUR USD CAD

November 23, 2015 - Written by Minesh Chaudhari

STORY LINK British Pound Sterling Exchange rate Forecast vs EUR USD CAD

Pound Outlook Neutral to Negative Following Disappointing Government Borrowing Data

The POUND STERLING (currency : GBP) put in a relatively disappointing performance against the other major global tenders on Friday following the publication of the worst set of October public sector borrowing data for six years.

The lasting impression of the official statistics is that the UK’s Conservative government is struggling to reduce the nation’s massive budget deficit.

While this feeling persists, the Pound is forecast to trade on a NEUTRAL TO NEGATIVE footing.

GBP to EUR Conversion Rate Trending in the Region of 1.4265

Friday afternoon’s whole of eurozone Consumer Confidence survey beat analysts’ expectations, but the EURO (currency : EUR) still gave up ground against Sterling on the day.

European Central Bank President Mario Draghi’s heavy hints that his Bank’s Quantitative Easing programme will be extended and its scope deepened next month hit the euro and the outlook for the shared currency is now NEGATIVE; the GBP EUR exchange rate stands at 1.4265.

December Fed Rate Hike Bets see GBP to USD Trading around 1.5240

The US DOLLAR (currency : USD) registered renewed gains against the Pound Sterling almost as soon as New York trading got underway on Friday.

The Buck had floundered earlier in the day, but benefitted from investors’ growing belief that there’s a high likelihood that the Federal Reserve will be hiking rates next month.

A strong showing from October’s US Existing Home Sales data later today will be required to maintain the upward pressure for the Buck; in the meantime, the forecast for the Greenback is NEUTRAL TO POSITIVE.

The Pound Dollar exchange rate stands at 1.5240 GBP USD.

Positive Inflation Data saw Canadian Dollar Gain Last Week

The CANADIAN DOLLAR (currency : CAD) posted a sustained improvement against the other sixteen most actively traded global currencies during the final hours of last week’s session.

The burst of support for the Loonie was triggered by the publication of government figures showing that the core rate of domestic inflation had remained at a relatively high year-on-year 2.1% last month.

The Canadian unit is expected to perform on a NEUTRAL footing moving forward and GBP CAD stands at 2.0233.

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