Foreign Currency Exchange Rate Predictions For GBP EUR USD CAD

Modified: Monday, 30 September 2013 17:42 BST - Written by Tim Boyer

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

The POUND STERLING is increasingly behaving like a reserve currency – global stock markets are down heavily over the past 24 hours with risk aversion the order of the day and the Pound has traded up against almost all of the other majors. Better than anticipated August UK Mortgage Approval data, released earlier, has also helped the Pound. The outlook for Sterling is NEUTRAL TO POSITIVE.

The EURO has endured sustained selling pressure so far today, sending the GBP EUR exchange rate up to the top of its recent range at 1.1986. News from Italy that a vote of confidence in the struggling nation’s incumbent government is to be held on Wednesday has harmed the single currency. Meanwhile the US debt crisis also appears to be weighing down the euro, which is behaving in an increasingly risk-sensitive fashion. The consensus forecast amongst analysts is that the euro will trade on a NEUTRAL TO NEGATIVE footing moving forward.

The US DOLLAR remains well and truly under the cosh in the global currency markets. The Federal Reserve’s procrastination on cutting its controversial Quantitative Easing programme caused the Greenback to soften in recent weeks and renewed fears regarding a potentially catastrophic outcome to the Democrat / Republican budgetary talks have added to the prevailing downside pressure on the Buck. These factors sent GBP USD up to as high as 1.6182 earlier and the Dollar is expected to trade with a NEUTRAL TO NEGATIVE bias moving forward.

The CANADAIN DOLLAR has slumped in the currency markets during the past two weeks taking the GBP CAD exchange rate to 1.6688 earlier. The move against the Loonie has been driven by concerns regarding a trimming of asset purchase prior to Christmas, a continued downward movement in global oil prices and concerns over the potentially decimating effect of the US debt stand-off. The Canadian tender is now expected to trade on a NEGATIVE footing in the short-to-medium term.

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