Weekly Currency News FX Exchange Rate Forecast for British Pound EUR USD CAD

July 5, 2016 - Written by John Cameron

STORY LINK Weekly Currency News FX Exchange Rate Forecast for British Pound EUR USD CAD

Sterling has remained low in the eyes of investors recently, with a number of property fund traders suspending action as a result of panicked market movements.

The Pound has failed to make much progress against peers today, on account of dwindling confidence in a post-'Brexit' UK economy.

Pound Sterling (GBP) Exchange Rate Outlook Negative

The POUND STERLING (currency : GBP) continues to slide against the other sixteen most actively traded global currencies.

The UK unit faces severe headwinds in coming months through an acidic combination of a lack of clear political leadership, a lack of clarity on the terms of the UK’s exit from the European Union and a potential domestic recession.

The outlook for Sterling is NEGATIVE.

Euro (EUR) Exchange Rate Outlook Neutral to Negative

The EURO (currency : EUR) has pushed ahead versus the Pound, but shipped support against the US Dollar following last month’s decision by UK voters to leave the European Union.

However, yesterday’s Sentix whole of eurozone investor sentiment survey for this month showed a dramatic drop-off from last month’s print of 9.9, triggering concerns that Brexit may elicit a collective nervous breakdown for the euroland’s economies.

The GBP EUR exchange rate stands at 1.1915 and the shared currency forecast is NEUTRAL TO NEGATIVE.

US Dollar (USD) Exchange Rate Outlook Neutral to Positive

The US DOLLAR (currency : USD) once again gained ground against Sterling yesterday.

The Buck has been riding high against the Pound in the aftermath of last month’s British Brexit decision thanks to Sterling weakness and a surge of safe haven support for the Greenback.

The next key risk event in the States is a big one – Friday’s monthly US Non-Farm Payrolls data will be closely-monitored for signs that conditions in the American labour market are improving.

Another duff result following June’s horrific numbers could see the market move against the Buck.

The outlook for the US tender is NEUTRAL TO POSITIVE and GBP USD stands at 1.3292.

Canadian Dollar (CAD) Exchange Rate Outlook Neutral to Positive

The CANADIAN DOLLAR (currency : CAD) suffered some limited downside yesterday afternoon when the results of June’s Purchasing Manager Index survey of Canada’s manufacturing sector printed at a lower level than the month before.

North American employment figures, both due for publication at the same time on Friday afternoon, will be market-moving for the Loonie, with the US version considered more important than the domestic jobs numbers.

The Canadian unit is forecast to perform on a NEUTRAL TO POSITIVE footing in the near-term and the GBP CAD exchange rate stands at 1.7077.

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