Currency Forecast For GBP EUR Exchange Rate Plus USD And CAD Predictions For Today

Published: Friday, 7 December 2012 15:00 BST - Written by John Cameron

STORY LINK Currency Forecast For GBP EUR Exchange Rate Plus USD And CAD Predictions For Today

This afternoon’s US Non-Farm Payrolls data thrashed expectations, revealing that 146,000 new jobs were created in America’s vast economy last month. The data also showed that the overall rate of unemployment in the US had tumbled to 7.2% in the same period. The positive US jobs numbers elicited support for the ‘Buck’ as investors trimmed their expectations for more QE in the States in 2013. This saw the GBP USD exchange rate to drop to 1.6001. The near-term outlook for the Greenback is NEUTRAL TO POSITIVE.

The CANADIAN DOLLAR has made significant gains against the Pound this afternoon, following the release of encouraging domestic employment data. Analysts had been anticipating a ‘no change’ result for the overall unemployment rate, so the dip to 7.7% which this afternoon’s numbers revealed, came as a pleasant surprise. The current GBP CAD exchange rate sits at 1.5823 and it is anticipated that the CAD will trade with a NEUTRAL TO POSITIVE bias in the short term.

The POUND STERLING has had a broadly even day in the currency markets. This morning’s UK data releases were a mixed bag; disappointing Industrial and Manufacturing Production numbers for June were mitigated by a higher than expected Bank of England / GfK 12 month Inflation prediction which suggests that there will be little scope for a further loosening of Britain’s monetary policy next year. Sterling is expected to trade on a NEUTRAL TO NEGATIVE footing in the near term.

The EURO has once again underperformed against the remainder of the major global currencies today. Weak German Industrial Production data, released this morning, heaped selling pressure on the single currency, which was already out of favour thanks to yesterday’s downbeat comments from European Central Bank President Mario Draghi. The current GBP EUR exchange rate is 1.2408 and the euro is expected to trade with a NEUTRAL TO NEGATIVE bias into next week.

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