Foreign Currency Exchange Rate Predictions For EUR GBP USD CAD

Published: Monday, 24 June 2013 18:00 BST - Written by Frank Davies

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

A strong showing from this morning’s Ifo index of business sentiment survey in Germany wasn’t enough to provide the EURO with any positive momentum on the day. The Pound to euro exchange rate (currency : GBP EUR) moved up to 1.1785 earlier on and with Thursday’s German unemployment data looming large, there remains the possibility of further downside to come for the single currency. The outlook for the euro is NEUTRAL TO NEGATIVE.

The POUND STERLING posted a weak performance during this morning’s session, giving up ground against almost all of the other sixteen most actively traded global currencies. The move against the Pound appeared to be technical in nature rather than fundamental-driven and Sterling’s ship has steadied this afternoon. Tomorrow morning’s Financial Stability report from the Bank of England will provide further clues regarding the future direction of UK monetary policy. In the meantime, the Pound is expected to trade on a NEUTRAL TO POSITIVE footing.

The US DOLLAR’s gains of last week, which followed the Fed’s pre-announcement of a tapering of Quantitative Easing, look to have run out of momentum. Investors now appear to be factoring-in the US central bank’s decision to keep its asset purchases at $85bn per month, for the time-being at least. Tomorrow has the potential to be a market-moving day for the Greenback, with the release of the latest domestic Durable Goods Orders and Consumer Confidence survey. The Buck is expected to trade on a NEUTRAL footing in the lead-up to these releases. The GBP USD exchange rate sits at 1.5412.

The CANADIAN DOLLAR has incurred further losses against the Pound so far today, sending the GBP CAD exchange rate up to 1.6240. Overnight indications from the People’s Bank of China that it would continue to tighten its monetary policy have raised renewed fears regarding future levels of demand for Canadian shipments of raw materials in this key export market meaning the Loonie is expected to trade on a NEUTRAL TO NEGATIVE footing in the short term.

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