Pound, Euro, Dollar + Canadian Dollar: Near-Term Exchange Rate Forecasts & Predictions 2014/2015

August 31, 2014 - Written by John Cameron

STORY LINK Pound, Euro, Dollar + Canadian Dollar: Near-Term Exchange Rate Forecasts & Predictions 2014/2015

Currency News UK - Our analyst’s exchange rate forecast for Pound Sterling (GBP), Euro (EUR), Dollar (USD) and Canadian Dollar (CAD) exchange rates in the short to medium term outlook.

The POUND STERLING (currency:GBP) has held its ground against most of the other sixteen most actively-traded global currencies so far today following this morning’s domestic property market numbers. The Nationwide House Price Survey showed a year-on-year increase of a dizzying 11.0%, suggesting that the Bank of England may be forced into a near-term interest rate hike. If market rumours suggesting that Base Rate is indeed on its way up are stoked by Monday’s UK Mortgage Approvals data for July, then look for Sterling to begin a NEUTRAL TO POSITIVE trend against the other major world currencies.

- The Pound to Australian Dollar exchange rate is 1.77718 GBP/AUD.
- The Pound to Canadian Dollar exchange rate is 1.80560 GBP/CAD.
- The Pound to Euro exchange rate is 1.26391 GBP/EUR.
- The Pound to US Dollar exchange rate is 1.65980 GBP/USD.

The EURO (currency:EUR) has floundered once again on the day, thanks to this morning’s data which revealed a renewed decrease in the level of price rises in the euroland economy. German Gross Domestic Product data on Monday morning provides the next risk event of note for the single currency, while the whole of eurozone version of the figure, which follows on Wednesday, could be key in shaping investors’ expectations on the future direction of the European Central Bank’s monetary policy. It would appear likely, given the tone of recent economic statistics emanating from mainland Europe, that the ECB will drop increasingly heavy hints that Quantitative Easing is on its way during the course of next month. For this reason, the single currency is forecast to trade on a NEGATIVE footing moving forward. GBP EUR stands at 1.2578.

- The Euro to Canadian Dollar exchange rate is 1.42858 EUR/CAD.
- The Euro to Pound exchange rate is 0.79120 EUR/GBP.
- The Euro to Dollar exchange rate is 1.31323 EUR/USD.

The US DOLLAR (currency:USD) has pushed ahead this afternoon following the publication of an encouraging set of US Personal Consumption Expenditure figures this afternoon. The numbers, which revealed that levels of spending from American economic participants remained steady last month, hint that confidence is returning to the vast US economy. The next key risk event for investors holding the Buck comes a week today in the form of the monthly US labour market numbers. In the meantime, expect the Greenback to trade with a NEUTRAL TO POSITIVE bias.

- The US Dollar to Canadian Dollar exchange rate is 1.08784 USD/CAD.
- The US Dollar to Euro exchange rate is 0.76148 USD/EUR.
- The US Dollar to Pound exchange rate is 0.60248 USD/GBP.

The CANADIAN DOLLAR (currency:CAD) was the big winner in the global currency markets this afternoon following the publication of stronger than anticipated Canadian Gross Domestic Product data a short time ago which pointed to a 3.1% year-on-year increase in domestic economic activity. With geo-political risk remaining relatively subdued, and the US Federal Reserve suggesting recently that America’s jobs market is not yet strong enough to withstand an increase in interest rates, the outlook for the Loonie is now NEUTRAL TO POSITIVE. The GBP CAD exchange rate stands at 1.7988.

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