Foreign Currency Exchange Rate Forecast For Pound GBP Versus EUR USD NZD CAD

March 10, 2014 - Written by Minesh Chaudhari

STORY LINK Foreign Currency Exchange Rate Forecast For Pound GBP Versus EUR USD NZD CAD

The EURO continues to apparently defy gravity in gaining ground against Sterling, in spite of the European Central Bank’s suggestions over the past four months that it may need to further loosen its monetary policy in order to re-inflate its economy. Higher than anticipated whole of eurozone Consumer Price Index figures, published earlier this month, have provided the single currency with some respite, but it does not appear to be out of the woods just yet. If Thursday’s ECB monthly report pleases, then look for the euro to trade on a NEUTRAL TO POSTIVE footing moving forward. The current Pound euro exchange rate stands at 1.2055 GBP/EUR.

The US DOLLAR clawed back a little ground against Sterling during the latter part of Friday’s session as market participants factored-in a higher percentage chance of a rapid end to the Fed’s QE programme following strong domestic job generation stats. Even still, the Pound Dollar exchange rate only fell to 1.6726 GBP/USD and the pair remains locked in a strong uptrend. A relatively spartan schedule of US data releases this week means that, providing the Fed’s Charles Plosser does not stoke rumours regarding a quick fire end to QE later today, then the Greenback is expected to continue to trade with a NEUTRAL TO NEGATIVE bias.

The NEW ZEALAND DOLLAR staged a spirited comeback against Sterling during last week’s session, sending the Pound Kiwi exchange rate down to 1.9795 during Friday trading. Strong Chinese import numbers for February, released over the weekend, and the anticipation that the Reserve Bank of New Zealand will be hiking its key interest rate on Wednesday night mean that the Kiwi is forecast to trade on a POSITIVE footing in the short term.

The CANADIAN DOLLAR was the major loser in the global currency markets during the closing hours of last week’s session thanks to the publication of a poor set of Canadian job creation numbers. In a nightmare scenario for investors holding the Loonie, US labour market numbers, released at the same time, showed that job growth is strong in the States, making further cuts to Quantitative Easing likely from the Federal Reserve. The Canadian unit is now forecast to trade on a NEUETRAL TO NEGATIVE footing moving forward and the current GBP CAD exchange rate stands at 1.8548.

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