Predictions: USD/GBP & USD/CAD Weekly Exchange Rate Forecast, US Payrolls in Focus

September 28, 2014 - Written by John Cameron

STORY LINK Predictions: USD/GBP & USD/CAD Weekly Exchange Rate Forecast, US Payrolls in Focus

Currency News UK: Our latest us dollar to pound and canadian dollar exchange rate forecasts

Over the past five days the USD/GBP exchange rate pushed higher despite the Pound garnering support from a number of UK developments.

UK public finance data might have disappointed on Tuesday, but the nation’s average weekly earnings and CBI reported sales figures printed fairly positively.

The majority of Sterling’s upward momentum came courtesy of Bank of England Governor Mark Carney, who pulled his usual trick of sparking interest rate hike speculation.

After the BoE chief used a speech in Wales to hint that increases in borrowing costs were on the horizon, the Pound strengthened across the board – though the currency proved unable to better a bullish US Dollar.

The Federal Reserve has also been implying that interest rates will be increased sooner than previously projected and the US Dollar has been trumping its counterparts accordingly.

Upbeat US stats have also aided the ‘Greenback’s advance. Today’s revised second quarter growth data saw expansion upwardly revised from 4.2% to 4.6% - the strongest quarterly growth since 2011. As stated by economist Brittany Baumann; ‘We definitely see momentum. Consumer spending should benefit from strengthening labour conditions and improved financial conditions’. Next week we can expect the USD/GBP exchange rate to experience extensive fluctuations. The pairing could shift notably on Friday after the US Non-Farm Payrolls report is released. Signs that the slack in the US labour market is being eroded would intensify Fed rate-hike speculation and could push the US Dollar to fresh highs against peers like the Pound.

US Dollar to Canadian Dollar Exchange Rate Forecast

The US Dollar has been outperforming all of its peers this week, including the Canadian Dollar. The ‘Loonie’ softened earlier in the month as a result of disappointing Canadian inflation figures and pared back Bank of Canada interest rate hike speculation.

Tuesday’s less-than-spectacular Canadian retail sales data put the currency under additional pressure, as did sliding commodity prices and the prospect of the US increasing borrowing costs.

Further ‘Loonie’ losses were incurred after the BOC’s Deputy Governor implied that the Canadian Dollar will falter after the Federal Reserve concludes its stimulus measures.

As the weekend approached the USD/CAD exchange rate achieved a high of 1.1143 thanks to impressive US growth data and a solid University of Michigan Consumer Confidence index.

Next week volatility in the USD/CAD exchange rate could be triggered by several key Canadian reports, including the nation’s Gross Domestic Product figures for July, Industrial Product Price data, RBC Manufacturing PMI and International Merchandise Trade stats.

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TAGS: American Dollar Forecasts Canadian Dollar Forecasts Currency Predict Forecasts