Pound Sterling Outlook vs EUR, USD CAD Exchange Rate Forecast

September 28, 2016 - Written by John Cameron

STORY LINK Pound Sterling Outlook vs EUR, USD CAD Exchange Rate Forecast

The POUND STERLING (currency : GBP) has steadied following its sharp test lower on Monday. Comments from the Society of Motor Manufacturers and Traders (SMMT) suggesting that the domestic motoring industry would be under threat if the UK is not permitted access to the European single market mean that the selling pressure is likely to continue for Sterling. The UK unit is forecast to trade on a NEUTRAL TO NEGATIVE footing moving forward.

Market Fears of a Eurozone Banking Crisis Weigh on Euro

Deutsche Bank shares have made a come-back on the day, climbing by almost 3% after yesterday’s falls, but the EURO (currency : EUR) has once again struggled to assert itself in the currency markets. The nagging fear that the Euroland economy could be about to face another banking meltdown is likely to weigh down the shared currency in the short-to-medium term, making the outlook for the Euro NEUTRAL TO NEGATIVE. The GBP EUR exchange rate stands at 1.1606.

USD Gains Mild Support from Mixed Durable Goods Orders Data

The US DOLLAR (currency : USD) was helped by this afternoon’s US Durable Goods Orders data for last month which printed at a higher level than had been expected by analysts. However, the downward revision to July’s counterpart figure partially cancelled out the positive effect. With the US Federal Reserve alone amongst the world’s leading central banks in countenancing an interest rate hike, the Buck is expected to perform on a NEUTRAL TO POSITIVE footing into the medium term and the GBP USD exchange rate stands at 1.2990.

US Oil Inventories decline Gives Canadian Dollar a Boost

The CANADIAN DOLLAR (currency : CAD) gained ground against the Pound Sterling during late trading today following the release of the latest weekly US Oil Inventory figures. The news of a 1.9 million barrel drop in the level of American stocks of Crude helped the Loonie, but the week’s main Canadian data release comes on Friday afternoon with July’s Canadian Gross Domestic Product numbers. The outlook for the Canadian tender is NEUTRAL TO NEGATIVE and the GBP CAD exchange rate stands at 1.7217.

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TAGS: Pound Sterling Forecasts