Exchange Rate Forecasts - Pound Sterling to Euro, US Dollar & Canadian Dollar Currency Predictions

Modified: Friday, 5 October 2012 15:52 BST - Written by David Woodsmith

STORY LINK Exchange Rate Forecasts - Pound Sterling to Euro, US Dollar & Canadian Dollar Currency Predictions

This afternoon’s closely-watched Non-Farm Payrolls release in the US showed at almost exactly the expected level. However, the latest set of US labour market data also revealed that the official level of unemployment unexpectedly dropped to 7.8% last month, down from August’s reading of 8.1%. The market’s instant reaction to the news was to move against the Greenback. This sent the GBP USD exchange rate to 1.6201 by late on in the European equities session. The Buck is expected to trade on a NEUTRAL TO NEGATIVE footing in the near term.

The US wasn’t the only major global economy to release employment data this afternoon; today also brought the release of Canadian jobs numbers for September. The figures showed that a healthy 52,100 new jobs were created in Canada last month – well ahead of expectations. The Canadian Dollar has been supported following the news, taking the GBP CAD exchange rate down to 1.5787. Having lost significant ground against the other majors in recent weeks, it is now anticipated that the ‘Loonie’ will trade with a NEUTRAL TO POSITIVE bias in short term.

Poor German Factory orders data held back the EURO during this morning’s session, but the single currency has made a roaring comeback during this afternoon’s European session, causing the GBP EUR exchange rate to plunge to its current level of 1.2409. The euro has benefitted from ECB President Draghi’s revelation during yesterday’s post announcement press conference that the Bank’s policy committee did not even discuss the potential for another rate cut for mainland Europe. The EUR is expected to trade on a NEUTRAL TO POSITIVE footing over the next few sessions.

The POUND STERLING has endured another moderately poor day in the currency markets on the day. The shift out of Sterling was not data-driven – there was no tier one UK data released today. However, the ever-present threat of more QE from the Bank of England next month continues to weigh down the Pound. While this situation persists, Sterling is anticipated to trade with a NEUTRAL TO NEGATIVE bias.

International Money Transfer? Ask our resident FX expert a money transfer question or try John's new, free, no-obligation personal service! ,where he helps every step of the way, ensuring you get the best exchange rates on your currency requirements.

TAGS: American Dollar Forecasts Canadian Dollar Forecasts Currency Predict Forecasts