Pound Sterling Canadian Dollar Exchange Rate Outlook & EUR USD Forecast

September 23, 2016 - Written by Frank Davies

STORY LINK Pound Sterling Canadian Dollar Exchange Rate Outlook & EUR USD Forecast

BoE Easing Comments Help Pound Sterling to Euro, US Dollar Exchange Rates Stabilise

POUND STERLING (currency : GBP) exchange rates continue to be weighed down by the threat of another near-term interest rate cut from the Bank of England. However, comments from policymember Kristin Forbes suggesting that she is not ready to vote for further policy loosening helped Sterling yesterday. With the relatively upbeat tone of post-Brexit vote data from the UK and Forbes’ comments, Pound to Euro (GBP EUR) Pound US Dollar (GBP USD) exchange rates are forecast to trade on a NEUTRAL footing moving forward.

Canadian Dollar (CAD) Exchange Rates Forecast to Fluctuate on CPI Data

Holders of the CANADIAN DOLLAR (currency : CAD) will be eyeballing this afternoon’s local Consumer Price Index data in order to provide a steer on the Bank of Canada’s next policy move. A showing of above the expected year-on-year result of 1.4% will make further rate cuts from the BoC less likely in the short term, favouring the Loonie. With the renaissance in global oil prices showing signs of continuing, the Canadian tender is expected to perform on a NEUTRAL TO POSITIVE footing moving forward. The GBP CAD exchange rate stands at 1.7066.

Euro Exchange Rates Fluctuate on Banking Issues, EUR GBP Currency Pair Dips

Worrying comments from European Central Bank (ECB) President Mario Draghi concerning potential problems with the regulation of the euroland’s shadow banks hurt the EURO (currency : EUR) yesterday. The suggestion that the banking sector may be migrating away from traditional banks towards unregulated intermediaries spooked market participants, weakening the shared currency. The outlook for EUR is now NEUTRAL TO NEGATIVE and the GBP EUR exchange rate stands at 1.1655.

Pound Sterling to US Dollar (GBP USD) Exchange Rate Recovers from Worst Levels

US DOLLAR (currency : USD) exchange rates put in a meek performance in the currency markets during yesterday’s session as investors took stock of Wednesday evening’s decision not to hike its benchmark interest rate by the US Federal Reserve. However, the ‘dot plot’ chart issued by the Fed at the time of the announcement revealed that the majority of ratesetters Stateside expect a hike this side of Christmas. For this reason, the outlook for the Buck is NEUTRAL TO POSITIVE, while the GBP USD exchange rate stands at 1.3110.

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