Canadian Dollar (CAD) & New Zealand Dollar (NZD) to Pound Sterling (GBP) Exchange Rates Forecast To Improve

May 19, 2014 - Written by John Cameron

STORY LINK Canadian Dollar (CAD) & New Zealand Dollar (NZD) to Pound Sterling (GBP) Exchange Rates Forecast To Improve

Canadian Dollar (CAD) & New Zealand Dollar (NZD) to Pound Sterling (GBP) exchange rates forecast to improve Comments from the world’s most influential financial policymaker towards the end of last week’s trading session in the global currency markets are forecast to shape the fortunes of several leading global currencies versus the Pound Sterling this week.

US Federal Reserve Chairperson Janet Yellen has not long been in the job, but she is already making her considerable presence felt. International investors sat up and took notice when Yellen stated during one of her first post-policy announcement press conferences that a US interest rate rise might follow as soon as six months after the end of the Fed’s controversial Quantitative Easing programme and she has spent much of the intervening period back-peddling.

The latest bout of reversing from Yellen came on Thursday afternoon, when she observed that the vast US economy, ‘has further to go’, to recapture it previous health. Investors monitoring Yellen’s words took them as a tacit signal that the US central bank is likely to persevere with its current ultra-loose monetary policy stance for some time to come. Support for the US Dollar (currency:USD) eased on Friday as a response, sending the Pound Dollar exchange rate back up through the 1.6800 threshold; the pair touched an intraday high of 1.6840 late on Friday as Yellen’s words were afforded further credence by the publication of a disappointing edition of the closely-watched Michigan Sentiment survey.

Meanwhile, the Commodity Dollars enjoyed sustained support as the week drew to a close thanks to the promise of more ‘easy money’ from the Fed. The Canadian Dollar (currency:CAD) came close to registering a fresh 2-month high against Sterling, as the GBP CAD exchange rate dropped towards the mid-1.8100s. Analysts now forecast the Pound Sterling Canadian Dollar exchange rate may head own into the 1.7000s once again.

The New Zealand Dollar (currency:NZD) also enjoyed a renaissance against the Pound Sterling during the latter part of the week’s trading session, and the pair is now forecast to edge down towards the 1.9000 threshold once more. Investors holding both the Canadian and New Zealand Dollars will be looking for the minutes of the US Federal Reserve’s April policy meeting, due for publication on Wednesday night, to strike a decidedly dovish tone in order to provide further fuel for their near-term improvement against the Pound.

CAD & NZD Exchange Rates (19/05/2014)

- The Pound Sterling to Canadian Dollar exchange rate is trading down -0.07% at 1.82677 GBP/CAD.
- The Pound Sterling to New Zealand Dollar exchange rate is trading up +0.01% at 1.94797 GBP/NZD.
- The Euro to Canadian Dollar exchange rate is trading up +0.05% at 1.48968 EUR/CAD.
- The Euro to New Zealand Dollar exchange rate is trading up +0.13% at 1.58852 EUR/NZD.

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