2014 / 2015 Forecast For The Pound to Dollar, Canadian Dollar and Rand Exchange Rates

November 10, 2014 - Written by John Cameron

STORY LINK 2014 / 2015 Forecast For The Pound to Dollar, Canadian Dollar and Rand Exchange Rates

Friday's trading session in the global currency markets has brought major developments and data releases which resulted in the Pound Sterling (currency:GBP) altering its relative value compared to key global currencies such as the US Dollar, Canadian Dollar and South African Rand. We take a look at the market shifts below.

The main risk event of the week came with the release of October’s US jobs data.

Investors had been pricing-in a ‘no change’ result from the overall unemployment element of the figures, so the result, which showed a drop from September’s 5.9% to 5.8%, provided the USD with a boost.

However, the positive effect which this had was at least in part offset by a disappointing showing from the job creation element of the data which printed at 214,000 versus an expected 235,000.

The upshot saw the Pound to Dollar exchange rate hold steady – the pair changed hands at 1.5838 GBP USD.

Canadian Dollar Climbs On Labour Market Numbers

Elsewhere in North America, the Canadian version of last month’s labour market data was also published this afternoon and the outcome has seen analysts upwardly adjust their forecast for the near-term trajectory of the Canadian Dollar (currency:CAD).

For once, experts got their predictions for the total unemployment number wildly wrong – they had been anticipating a showing of 6.9% - up from the previous month’s 6.8%.

What they actually got was a showing of 6.5%, suggesting that the Canadian economy is in rude health.

The Pound Sterling to Canadain Dollar exchange rate slumped to as low as 1.7940 GBP CAD as a result and analysts forecast further losses to come for the pair into the medium term.

Surcharge Deal Helps Pound Sterling

Meanwhile, Friday’s European Union Finance Ministers meeting in Brussels brought a significant development, with the UK Chancellor of the Exchequer claiming that he has negotiated a deal to write-off half of the £1.7bn surcharge which Britain was landed with a month ago.

The fact that the UK will be allowed to pay off the reduced bill in staged payment over the next 12 months added to the upside for the UK economy and for the Pound Sterling.

South African Rand Under Pressure

Finally, the South African Rand was dealt a heavy blow on Friday when leading credit ratings agency Moody’s downgraded South Africa’s sovereign debt rating by two notches to Baa2. The Pound Sterling South African Rand exchange rate climbed to as high as 17.9740 GBP ZAR as a result.

International Money Transfer? Ask our resident FX expert a money transfer question or try John's new, free, no-obligation personal service! ,where he helps every step of the way, ensuring you get the best exchange rates on your currency requirements.

TAGS: American Dollar Forecasts Canadian Dollar Forecasts Currency Predict Forecasts