Exchange Rate Forecasts: Pound to Euro (GBP/EUR) & Pound to Canadian Dollar (GBP/CAD) To Break To New Highs

Modified: Friday, 29 November 2013 10:32 BST - Written by Ben Hughes

STORY LINK Exchange Rate Forecasts: Pound to Euro (GBP/EUR) & Pound to Canadian Dollar (GBP/CAD) To Break To New Highs

Data releases during today’s session are likely to provide investors holding Sterling-denominated assets with further clues on the state of the real economy in the UK. After yesterday’s firm assertion from Bank of England Governor Mark Carney that the recovery in Britain’s housing sector is so strong that a house price bubble might be formed, great things are expected from the 0930hrs October UK Mortgage Approvals figure. A monthly showing of 68,500 is anticipated, up from September’s counterpart print of 66,700. With any increase in property prices during the short to medium term largely dependent upon lending from Britain’s banks, analysts will be looking for a strong showing from the release in order to provide the Governor’s words with credence.

Pound Euro Forecast Could Pass 10 1/2 Month High at 1.2048 GBP/EUR

The Pound to euro exchange rate (GBP/EUR) looked like it was establishing itself above the psychologically key 1.2000 level for the majority of yesterday’s European session, before taking a slight backward step during the second half of the North American trading day. However, the pair is offered a quick opportunity to prove that it has the necessary levels of support to hold in the 1.2000s later this morning when November’s whole of eurozone Consumer Price Index data is published. With the European Central Bank consistently commenting during recent months that it is counseling a further loosening of its monetary policy, market participants are ultra-sensitive to any data which hints that inflation is on the wane in mainland Europe. A showing of below the forecast annualised 0.9% CPI figure this morning is therefore forecast to send GBP EUR up through its existing 10 ½ month high at 1.2048.

Pound Canadian Dollar Exchange Rate Could Break Above 1.7300 GBP/CAD

Elsewhere, the Canadian Dollar is in desperate need of a relatively strong showing from this afternoon’s domestic Gross Domestic Product data. Expectations are high with an annualised showing of 2.5% expected. This set-up means that the Pound Canadian Dollar exchange rate (GBP/CAD) is forecast to break back above the 1.7300 level once more later on.

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TAGS: Canadian Dollar Forecasts Daily Currency Updates Euro Forecasts Eur Forecasts