Foreign Currency Exchange Rate Predictions For GBP EUR USD & CAD

Modified: Wednesday, 31 July 2013 15:07 BST - Written by Tim Boyer

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

The POUND STERLING has been friendless in the global currency market so far this week. Fears regarding the potential tone and content of tomorrow’s Bank of England ‘Forward Guidance’ statement are weighing heavily on the Pound. The UK tender is expected to continue to trade on a NEUTRAL TO NEGATIVE footing in the lead up to midday tomorrow.

The EURO has pushed ahead against the Pound today, sending the GBP EUR exchange rate down to within half a cent of its 2013 low at 1.1429 earlier on. The single currency has not performed so convincingly against the US Dollar however, and has given up a third of a percentage point of its value against the Greenback on the day. Fears that tomorrow afternoon’s session may see the European Central Bank announce that it is set to introduce a negative interest rate for holding overnight deposits on behalf of financial institutions have provided a slight headwind for the single currency. The euro is expected to trade on a NEUTRAL footing in the lead-up to tomorrow.

The US DOLLAR has stormed ahead against Sterling so far today, sending the GBP USD exchange rate all the way down to 1.5122. The Greenback has been well-supported thanks to investors shifting funds to factor-in a high percentage change that this evening Federal Reserve FOMC announcement will drop heavy hints that QE is on the way out in the States. A higher than anticipated private sector employment change figure has further assisted the Buck, which is expected to trade with a NEUTRAL TO POSITIVE footing moving forward.

The CANADIAN DOLLAR has gained half a percent against the Pound on the day thanks to this afternoon’s Canadian GDP data which revealed that the North American nation’s economy expanded at an increased rate in May. However, the Loonie remains firmly at risk of renewed losses later today when the US Federal Reserve makes its latest policy announcement. If the Fed informs the markets that it is tapering QE then the CAD is highly likely to give up ground. The outlook for the Canadian Dollar is therefore NEUTRAL TO NEGATIVE and the current GBP CAD exchange rate is 1.5637.

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