Currency Exchange Rate Forecast / Prediction For Pound Sterling, Euro, US Dollar & Canadian Dollar

Modified: Wednesday, 8 January 2014 09:16 BST - Written by Ben Hughes

STORY LINK Currency Exchange Rate Forecast / Prediction For Pound Sterling, Euro, US Dollar & Canadian Dollar

The POUND STERLING (currency:GBP) put in a steady performance during yesterday’s session suggesting that institutional investors still remain unconvinced by Britain’s apparent economic recovery. Figures which showed that the sale of new cars had hit their highest level since before the credit crunch were not enough to provoke any sustained support for the UK unit. The next risk event of note for the Pound comes tomorrow morning with the release of the latest British trade numbers; in the meantime Sterling is forecast to trade with a NEUTRAL bias.

The EURO (currency:EUR) failed to shine during yesterday’s session as investors priced-in data which revealed a lower than anticipated level of inflation in the eurozone. A disappointing showing from this morning’s regional shop sales numbers could send GBP EUR higher from its recent level of 1.2048 GBP/EUR. The single currency is forecast to trade on a NEUTRAL TO NEGATIVE footing moving forward.

Yesterday afternoon’s news that America’s trade gap had shrunk to its lowest level in four years provided the US DOLLAR (currency:USD) with some much-needed support. The improvement which followed for the Buck sent the Pound Dollar exchange rate briefly back down into the 1.6300s GBP/USD. However these Dollar gains could be erased if tonight’s Federal Reserve minutes confirm that Quantitative easing is here to stay in the States. The outlook for the Greenback is NEUTRAL.

The CANADIAN DOLLAR (currency:CAD) endured another horror session in the global currency markets yesterday, shedding over 1.0% of its value against Sterling. The slump in support for the Loonie was driven by strong US trade figures which suggested that America’s economy may now be hardy enough to endure a complete phasing out of Quantitative Easing. Comments from Canadian Finance Minister Jim Flaherty confirming that the BoC Governor expects further losses for the Canadian tender piled renewed pressure on the CAD which is now predicted to trade with a NEGATIVE slant in the short-to-medium term.

Relevant Exchange Rates (As of: 08/1/2014 10:00 GMT)

The Pound Sterling to Canadian Dollar exchange rate is trading up +0.59% at 1.77757 GBP/CAD.
The Pound Sterling to Euro exchange rate is trading up +0.23% at 1.20709 GBP/EUR.
The Pound Sterling to US Dollar exchange rate is trading up +0.16% at 1.64262 GBP/USD.
The Euro to Canadian Dollar exchange rate is trading up +0.36% at 1.47261 EUR/CAD.
The Euro to Pound Sterling exchange rate is trading down -0.23% at 0.82844 EUR/GBP.
The Euro to US Dollar exchange rate is trading down -0.07% at 1.36081 EUR/USD.

The US Dollar to Canadian Dollar exchange rate is trading up +0.43% at 1.08216 USD/CAD.
The US Dollar to Euro exchange rate is trading up +0.07% at 0.73486 USD/EUR.
The US Dollar to Pound Sterling exchange rate is trading down -0.16% at 0.60879 USD/GBP.

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