Currency Exchange Rate Forecasts: Pound Sterling (GBP), Euro (EUR), Dollar (USD) & Canadian Dollar (CAD)

Modified: Sunday, 10 November 2013 20:25 BST - Written by Ben Hughes

STORY LINK Currency Exchange Rate Forecasts: Pound Sterling (GBP), Euro (EUR), Dollar (USD) & Canadian Dollar (CAD)

The POUND STERLING struggled to assert itself against any of the other sixteen most actively traded global currencies, (with the notable exceptions of the Australian and New Zealand Dollars), during Friday’ session. The flaky support for the UK tender was driven by a disappointing set of September import/export numbers which hinted that the recent strengthening of Sterling is beginning to hamper UK industry. The outlook for the Pound is now NEUTRAL.

The EURO held its own surprisingly well against the other majors as the global currency market headed towards Friday night’s shutdown. Leading analysts had feared the worst for the single currency following Thursday’s shock decision by the European Central Bank to trim its key lending rate. However, in a clear case of putting the cart before the horse, the euro stubbornly refused to give up any further ground, suggesting that a large proportion of investors were unsurprised by the ECB’s action. The single currency is likely to trade with a NEGATIVE bias in the short to medium term. The current GBP EUR exchange rate stands at 1.1978.

The US DOLLAR garnered sustained support in the markets during the final few hours of last week’s trading session as investors rapidly moved to price-in an increased percentage chance that the Federal Reserve will trim Quantitative Easing prior to Christmas following the publication of strong US jobs numbers. The Pound US Dollar exchange rate (GBP/USD) slumped to 1.5958 as a result of the Non-Farm Payrolls data but a mildly disappointing Michigan survey tempered the Buck’s gains on the day. The Greenback is now forecast to trade on a NEUTRAL TO POSITIVE footing moving forward.

The CANADIAN DOLLAR surged against the Pound during the latter part of last Friday’s session, sending the GBP CAD exchange rate tumbling by 0.50% on the day to trade to an intraday low of 1.6749. As ever, the strong US jobs data, published just before the North American session began, favoured the Loonie as much as it did the US Dollar. Better than anticipated Canadian labour market numbers also helped the Canadian unit. The CAD is now forecast to trade on a NEUTRAL TO POSITIVE footing in the near-term.

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