Foreign Currency Exchange Rate Forecast For EUR GBP & Predictions For CAD & USD

Published: Thursday, 31 January 2013 16:00 BST - Written by Ben Hughes

STORY LINK Foreign Currency Exchange Rate Forecast For EUR GBP & Predictions For CAD & USD

The EURO suffered a sharp bout of selling pressure earlier this morning, when the latest German and French retail sales data showed a sharp drop off from the year before. With this afternoon’s German CPI inflation data also printing at below the expected level, leaving the door open for more monetary easing by the European Central Bank, the single currency is expected to trade on a NEUTRAL footing moving forward. The current GBP EUR exchange rate stands at 1.1649.

The US DOLLAR has continued to ease against Sterling during today’s session, sending the GBP USD exchange rate to 1.5842 earlier. With yesterday’s session bringing the release of dire US Q4 GDP data and the Federal Reserve announcing that there would be no new monetary easing this month, the near-term outlook for the safe-haven Greenback is NEUTRAL TO POSITIVE, providing tomorrow’s Non-farm Payrolls data doesn’t print at above the expected 155,000.

The POUND STERLING has managed to register some small gains against the majority of the other sixteen most-actively traded global currencies today. The UK tender benefitted from the lack of British data releases on the day. However, Sterling may not be so fortunate tomorrow, with the latest PMI Manufacturing Survey due out first thing. A slowdown in growth of this key sector is anticipated, meaning that the Pound trades on a NEUTRAL TO NEGATIVE footing moving forward.

The CANADIAN DOLLAR has held its own against the Pound on the day, in spite of this afternoon’s mildly disappointing domestic GDP growth data for November. Yesterday’s weak US GDP data triggered a shift out of the CAD and there could be further near-term selling pressure to come for the ‘Loonie’, meaning that the outlook for the Canadian tender is NEUTRAL TO NEGATIVE. The current GBP CAD exchange rate stands at 1.5823.

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