Today's Forecasts: Pound (GBP), Euro (EUR), Dollar (USD) and Canadian Dollar (CAD) Exchange Rates

November 11, 2014 - Written by John Cameron

STORY LINK Today's Forecasts: Pound (GBP), Euro (EUR), Dollar (USD) and Canadian Dollar (CAD) Exchange Rates

Read our latest forex forecasts for the Pound Sterling (currency:GBP) versus the euro (currency:EUR) and FX predictions for the US Dollar (currency:USD) and Canadian Dollar (currency:CAD).

The POUND STERLING (currency:GBP) performed poorly during yesterday’s session.

Comments from the leaders of the UK’s major political parties failed to assuage market participants’ concerns that a British exit from the European Union would trigger a dramatic drop-off in the level of UK economic activity.

Labour leader Ed Miliband’s assertion that the mere suggestion that it might exit the EU was leaving Britain ‘ever more isolated from its partners’ added to Sterling’s woes. The outlook for the UK unit is now NEUTRAL TO NEGATIVE.

The Pound to Australian Dollar exchange rate converts -0.09 per cent lower at 1 GBP is 1.83611 AUD.
The Pound to Canadian Dollar exchange rate converts +0.19 per cent higher at 1 GBP is 1.80579 CAD.
The Pound to Euro exchange rate today is converting +0.05 per cent higher at 1.27608 GBP/EUR.
The Pound to New Zealand Dollar exchange rate converts -0.07 per cent lower at 1 GBP is 2.04233 NZD.
The Pound to US Dollar exchange rate is +0.03 pct higher with a conversion rate of 1 GBP equals 1.58558 USD.

Euro Forecast: EUR Suffers As ECB Policy Weakening Continues

Support for the EURO (currency:EUR) eased during yesterday’s afternoon session following the revelation from the European Central Bank (ECB) that it has slowed the pace of covered bond purchases in order to clear the decks for increased buying of the region’s asset-backed securities.

Investors took the news as further evidence that the ECB is actively weakening its monetary policy stance, with the logical conclusion being a bout of all-out Quantitative Easing for the euroland.

Analysts continue to forecast that the future prospects of the EUR are NEGATIVE.

US Dollar Forecast: USD Strength Continues

The US DOLLAR (currency:USD) continued to perform well against Sterling and the other major global currencies during yesterday’s session, sending the GBP USD exchange rate down to as low as 1.5859 during the middle part of the day.

The latest monthly Labour Market Conditions Index, published during the middle part of the North American trading day, pointed to no change in the jobs market from last month, however, the Buck is likely to remain well-bid into the medium term thanks to last Friday’s strong domestic employment numbers.

Dollar-watchers will have to wait until Friday, with the publication of US Retail Sales and November’s Michigan Sentiment Index for the next major steer on the Greenback. In the meantime, our forecast is that the Buck will trade with a NEUTRAL TO POSITIVE footing.

Canadian Dollar Forecast: Weak Housing Data Holds Back CAD

The CANADIAN DOLLAR (currency:CAD) put in a strong showing during the final stretch of last week following an encouraging set of domestic jobs numbers.

However, the goodwill towards the Loonie appears to have evaporated during today’s session thanks to a disappointing set of Housing Start figures.

Investors holding CAD-denominated assets were hoping for a decent number in order to ratchet up the pressure on the Bank of Canada to consider an interest rate increase, so the release is likely to weigh down the Loonie for the foreseeable future.

Analysts predict that the Canadian Dollar will perform on a NEUTRAL TO POSITIVE footing moving forward.

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