Pound Sterling FX Currency Forecast versus EUR USD CAD

August 23, 2016 - Written by Ben Hughes

STORY LINK Pound Sterling FX Currency Forecast versus EUR USD CAD

Pound Sterling Exchange Rates Forecast to Maintain Negative Bias

The POUND STERLING (currency : GBP) experienced a pronounced wobble on Friday afternoon after newly-installed British Prime Minister Theresa May confirmed that she expected the UK to trigger article 50 of the Lisbon Treaty before next year’s French and German elections. Support for the Pound dipped as Brexit worked its way back to the forefront of investors’ minds and in spite of yesterday’s improvement, Sterling is forecast to trade with a NEGATIVE bias moving forward.

Euro (EUR) Outlook Neutral/Negative Today

The EURO (currency : EUR) has steadied against both the Pound and the US Dollar during recent sessions. However, a packed data schedule during the second half of this week threatens to erode the shared currency’s near-term outperformance. Tomorrow morning’s German Trade and GDP growth data will be market-moving for the single currency and with a potential meltdown of Italy’s retail banking sector still a live possibility, the outlook for the euro is NEUTRAL TO NEGATIVE. The GBP EUR exchange rate stands at 1.1610.

Can the Pound Advance Beyond 1.31 Vs the US Dollar this Week?

The US DOLLAR (currency : USD) remains firmly in the focus of global currency market participants; while other major central banks consider further loosening their monetary policy, the US Federal Reserve is openly discussing a hike in the cost of domestic borrowing. Market whispers regarding a rate hike are likely to prop up the Buck in the near-term and a positive message from Fed Chair Janet Yell’s Jackson Hole speech on Friday could see the Dollar forecast turn even more POSITIVE. The GBP USD exchange rate sits at 1.3136.

CAD Currency News - Canadian Dollar Forecast Neutral

The CANADIAN DOLLAR (currency : CAD) was the worst-performing of the sixteen most actively traded global currencies against the Pound during yesterday’s session. The stark underperformance from the Loonie was driven by a steady decline in the intraday price of a barrel of Brent Crude oil. Black Gold started out the day at close to the $51 level but by the middle part of the North American session was trading down at barely above $49. The outlook for the Canadian unit is now NEUTRAL TO NEGATIVE and the Pound Loonie exchange rate stands at 1.7002 GBP CAD.

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