Foreign Exchange Rate Forecasts For Euro, Pound Sterling, Dollar & Canadian Dollar

Modified: Monday, 8 July 2013 15:29 BST - Written by Toni Johnson

STORY LINK Foreign Exchange Rate Forecasts For Euro, Pound Sterling, Dollar & Canadian Dollar

The EURO has held up reasonably well so far today, meaning that the GBP EUR exchange rate currently trades at 1.1615. Some poor data from Germany threatened the single currency, but in the end investors were able to put the weaker than anticipated May Trade Balance and Industrial Production figures to the back of their mind and concentrate instead on rumours that Greece is set to be granted its largest tranche of bailout funding. The outlook for the euro is NEUTRAL.

The POUND STERLING continues to labour under the downward pressure triggered by last Thursday’s depressing ‘forward guidance’ statement from the Bank of England. The latest UK Business Optimism Index from accountants / consultancy firm BDO, released earlier today, showed at its highest level for over a year, but still the Pound couldn’t push on. Sterling is expected to trade on a NEUTRAL TO NEGATIVE footing moving forward.

The US DOLLAR has held on to the majority of the gains which it revelled in on Friday afternoon following the publication of June’s positive Non-Farm Payrolls figure. Positive risk sentiment during today’s European equities session has failed to hurt the Greenback, meaning that a deterioration of the volatile political situation in Egypt might well favour the world’s premier safe haven currency. The USD is expected to trade on a NEUTRAL TO POSITIVE footing moving forward and the GBP USD exchange rate stands at 1.4920.

The CANADIAN DOLLAR has registered strong gains during the past two trading days thanks to the encouraging job creation data released in the States on Friday. However, the Canadian tender remains firmly in the ‘at risk’ category thanks to a continuing softening of global commodity prices and the ever-present threat from the US Federal Reserve to wind down its quantitative easing programme. The Loonie is expected to trade with a NEUTRAL TO NEGATIVE bias in the near term and the current GBP CAD exchange rate stands at 1.5753.

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