Pound Sterling to Euro Exchange Rate Forecast and US to Canadian Dollar Prediction

Modified: Tuesday, 3 February 2015 13:02 BST - Written by John Cameron

STORY LINK Pound Sterling to Euro Exchange Rate Forecast and US to Canadian Dollar Prediction

Pound Sterling Exchange Rate Forecasts for the Euro, US Dollar and Canadian Dollar

The POUND STERLING (currency:GBP) leaked support during yesterday’s trading session following a meeting between UK Chancellor of the Exchequer George Osborne and his Greek counterpart Yanis Varoufakis.

Osborne’s warning that the ‘Greek Problem’ presents a real and present threat to the British economy held back Sterling on the session and even a stronger than anticipated PMI manufacturing survey was insufficient to allay these fears. Analysts forecast that the Pound will trade with a NEUTRAL TO NEGATIVE footing in the lead-up to Thursday’s Bank of England policy decision.

Euro Exchange Rate Forecast: EUR Enjoys Temporary Respite

The EURO (currency:EUR) put in its best performance for some time during yesterday’s session.

The move appeared to be technical in nature, rather than driven by any specific fundamentals, (the single currency has lost a lot of ground during a short space of time, so was perhaps due a better day).

However, the problems continue to loom large for the single currency, with Greece likely to ramp up its rhetoric in the lead-up to 28th February, when the troubled Hellenic state’s current bailout programme comes to an end.

The euro is forecast to trade on a firmly NEGATIVE footing into the medium term and GBP EUR stands at 1.3253.

Disappointing Manufacturing Data Hampers Dollar Exchange Rate

The US DOLLAR (currency:USD) held steady on the day, with the GBP USD exchange rate dipping to an intraday low of 1.5008.

Yesterday afternoon’s disappointing ISM Manufacturing survey was the latest in a fair sized line of below par economic statistics from the states.

Economists’ forecasts that it will be a long time before the Federal Reserve is in a position to hike its leading interest rate could hold back the Buck moving forward, meaning that the outlook for the Greenback is now NEUTRAL. GBP USD sits at 1.5045.

Crude Oil Bounce Favours Canadian Dollar

The CANADIAN DOLLAR (currency:CAD) put in a strong performance in the global currency markets during yesterday’s session as the price of a barrel of crude oil continued to bounce higher.

However, the potential for further interest rate cuts from the Bank of Canada following last month’s surprise decision to trim its key lending rate, continues to anchor the Loonie.

The outlook for the Canadian unit is NEUTRAL TO NEGATIVE and the GBP CAD exchange rate stands at 1.8934.

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TAGS: American Dollar Forecasts Canadian Dollar Forecasts Currency Predict Forecasts