Foreign Exchange Rate Forecasts - Euro (EUR), Pound Sterling (GBP), Dollar (USD) & Canadian Dollar (CAD)

July 1, 2014 - Written by John Cameron

STORY LINK Foreign Exchange Rate Forecasts - Euro (EUR), Pound Sterling (GBP), Dollar (USD) & Canadian Dollar (CAD)

Foreign rate forecasts and predictions for the Euro, Pound, US Dollar and Canadian Dollar exchange rates: The POUND STERLING exchange rate registered gains against the majority of the other sixteen most actively traded global currencies during yesterday’s session in spite of a complete absence of British tier one data releases.

This morning’s Markit UK PMI Manufacturing survey has the potential to be market-moving if it shows that the output of Britain’s factories has increased once again.

Thursday morning’s PMI survey of the UK services sector is the next data release of note for Sterling-watchers. In the meantime, the UK tender is expected to trade with a NEUTRAL bias.

The EURO put in a tame performance during yesterday’s session, sending the Pound to euro exchange rate up to as high as 1.2499 GBP/EUR by the middle part of the European equities session.

The news that the year-on-year rate of price rises in the eurozone had remained at 0.5% hurt the single currency and there could be further bad news for the euroland unit later today; the latest set of whole of eurozone unemployment figures is expected to show that the overall rate of joblessness in mainland Europe remained at close to 12%.

The news could heap further pressure on the euro which is expected to trade on a NEUTRAL TO NEGATIVE footing in the near-term.

The US DOLLAR slumped in the global currency markets during yesterday’s session, sending the Pound to Dollar exchange rate up to as high as 1.7114 GBP/USD during the latter part of the US equities session.

The move against the Buck was somewhat counterintuitive, with yesterday afternoon’s US housing market figures beating expectations – a development which would ordinarily support the Buck. Adam Cole of the Royal Bank of Canada posited yesterday that the weakness is a, ‘combination of low yields and low volatility, and the Dollar is just being dragged lower in the environment generally’.

The Dollar forecast is now NEUTRAL TO NEGATIVE.

The CANADIAN DOLLAR shipped support against the Pound Sterling yesterday.

Four weeks ago, an encouraging set of Gross Domestic Product numbers sparked rumours that the Bank of Canada might be moving closer to a decision to increase its key lending rate from it current 1.00%.

However, yesterday’s below par domestic GDP data scotched these market whispers, meaning that the forecast for the Canadian Dollar is now NEUTRAL TO NEGATIVE. The Pound Sterling Canadian Dollar exchange rate currently stands at 1.8252.

Latest GBP, EUR, USD and CAD Dollar Exchange Rates - 03/07/2014

The Pound Sterling to Canadian Dollar exchange rate is trading down -0.25% at 1.82603 GBP/CAD.
The Pound Sterling to Euro exchange rate is trading down -0.09% at 1.25581 GBP/EUR.
The Pound Sterling to US Dollar exchange rate is trading down -0.08% at 1.71464 GBP/USD.
The Euro to Canadian Dollar exchange rate is trading down -0.17% at 1.45407 EUR/CAD.
The Euro to Pound Sterling exchange rate is trading up +0.09% at 0.79630 EUR/GBP.
The Euro to US Dollar exchange rate is trading up +0% at 1.36536 EUR/USD.

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