Exchange Rate Forecast For Euro (EUR), Pound Sterling (GBP), US Dollar (USD) & Canadian Dollar (CAD)

Modified: Thursday, 28 November 2013 15:51 BST - Written by John Cameron

STORY LINK Exchange Rate Forecast For Euro (EUR), Pound Sterling (GBP), US Dollar (USD) & Canadian Dollar (CAD)

The EURO has given up ground against the Pound so far today, sending the GBP EUR exchange rate up to as high as 1.2026 during the middle part of the UK equities session. Worse than expected prints from this morning’s German Unemployment and whole of eurozone Consumer Confidence data have hampered the single currency on the day. If tomorrow’s eurozone Consumer Price Index disappoint, then there could be further short-term losses for the euro – the single currency is therefore expected to trade on a NEUTRAL TO NEGATIVE footing moving forward.

The POUND STERLING enjoyed an unexpected boost earlier today when Bank of England Governor Mark Carney announced that the UK’s Funds For Lending scheme will no longer be available to British householders. Carney observed an improvement in the UK property sector and stated he did not want to risk a bubble forming in this key area of the British economy. The Pound is forecast to trade on a NEUTRAL TO POSITIVE footing moving forward.

The US DOLLAR remains friendless in the currency market, sending the Pound Dollar exchange rate up to a fresh 2013 high of 1.6354 earlier. Investors continue to bet that it will be well into next year before the US Federal Reserve begin tapering Quantitative Easing, and this week’s tame US data releases has re-enforced this feeling. With no further tier one data releases due out of the States before the weekend shutdown, the outlook for the Buck is NEUTRAL TO NEGATIVE as we head into next week.

The CANADIAN DOLLAR has slumped against the other majors today, sending GBP CAD above the 1.7300 threshold for the first time in several years. The move out of CAD-denominated assets has been driven by a change in policy tack from the Bank of Canada, which is now stating that its next interest rate move may not be to the upside. A continued easing of global oil prices has also hit the Loonie, meaning that the Canadian unit is expected to trade on a NEGAITVE footing moving forward.

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