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

Modified: Friday, 7 February 2014 11:26 BST - Written by Tim Boyer

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

The Bank of England opted to maintain its current monetary policy yesterday but the POUND STERLING (currency:GBP) still gave up ground against the other majors on the day. With Wednesday’s disappointing Purchasing Manager Index survey of the Services sector of the British economy still weighing on their minds, investors took the BoE’s continued inaction as a worrisome development. A tame showing from this morning’s UK Manufacturing and Industrial Production data would top off a poor week for the Pound Sterling with a duff note and the Pound Sterling forecast is to trade with a NEUTRAL TO NEGATIVE bias near-term.

Investors holding the EURO (currency:EUR) viewed yesterday afternoon’s press conference from President Mario Draghi with some trepidation, however their concerns that Draghi might give another shoeing to the single currency proved unfounded. The head honcho at the ECB moved to dispel fears that deflation was a possibility in the eurozone and the upshot, in combination with a ‘hold’ decision on interest rates earlier the same day, ensured that the Pound Euro exchange rate fell to 1.1972 GBP EUR. However, Draghi also stated that the recovery in mainland Europe remains fragile and uneven and is starting from low levels of activity. For this reason, the single currency is expected to trade on a NEUTRAL TO NEGATIVE footing moving forward.

The US DOLLAR’s (currency:USD) near-term fortunes hinge on this afternoon’s American labour market numbers. A repeat of last month’s shockingly weak Non-Farm Payrolls figure will be likely to once again hurt the Buck. However, another unexpected fall in the overall level of unemployment in the States would be likely to heighten expectations regarding a swift end to the Fed’s Quantitative Easing programme, favouring the Greenback. Early indications, including yesterday afternoon’s US Initial Jobless Claims figures, suggest that this afternoon’s numbers may provide grounds for encouragement, so the Buck is forecast to trade on a NEUTRAL TO POSITIVE trajectory moving forward. The current Pound Dollar exchange rate stands at 1.6334 GBP USD.

The CANADIAN DOLLAR (currency:CAD) bounced back against Sterling during yesterday’s afternoon session thanks to a significantly stronger than expected showing from January’s Ivey Purchasing Manager Index survey. The print of well above the break-even 50.0 level thrahed expectations, sending the Pound Canadian Dollar exchange rate briefly down to 1.7982 GBP CAD and the forecast for the Loonie is now NEUTRAL TO POSITIVE.

Key Pound Sterling, Euro, US Dollar & CAD Dollar Exchange Rates (Updated: 11:15 GMT 07/02/2014)

The Pound Sterling to Canadian Dollar exchange rate is trading up +0.08% at 1.80828 GBP/CAD.
The Pound Sterling to Euro exchange rate is trading up +0.27% at 1.20416 GBP/EUR.
The Pound Sterling to US Dollar exchange rate is trading up +0.14% at 1.63427 GBP/USD.
The Euro to Canadian Dollar exchange rate is trading down -0.18% at 1.50170 EUR/CAD.
The Euro to Pound Sterling exchange rate is trading down -0.27% at 0.83046 EUR/GBP.
The Euro to US Dollar exchange rate is trading down -0.13% at 1.35719 EUR/USD.

The US Dollar to Canadian Dollar exchange rate is trading down -0.05% at 1.10648 USD/CAD.
The US Dollar to Euro exchange rate is trading up +0.13% at 0.73682 USD/EUR.
The US Dollar to Pound Sterling exchange rate is trading down -0.14% at 0.61190 USD/GBP.

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