Pound Sterling GBP FX Forecast VS Euro (EUR), US Dollar and Canadian Dollar

Modified: Friday, 17 July 2015 06:16 BST - Written by John Cameron

STORY LINK Pound Sterling GBP FX Forecast VS Euro (EUR), US Dollar and Canadian Dollar

Pound hits Best Conversions Rates against Australian, Canadian Dollars, (GBP/AUD), (GBP/CAD)

The POUND STERLING (currency:GBP) put in a stellar performance against the other sixteen most actively traded global currencies yesterday. The UK unit was helped by comments from Bank of England Governor Mark Carney suggesting that British interest rates could be on the march higher sooner rather than later. However, yesterday morning’s anaemic British inflation figures send out a diametrically opposite message. Expect the Sterling-positive effect of Carney’s comments to wear off today and the Pound to trade on a NEUTRAL TO NEGATIVE bias.

Currency Market Outlook for Euro (EUR) Exchange Rate: GBP/EUR Gains on Greek Concerns

The EURO (currency:EUR) continues to be hampered by investors’ concerns regarding the future existence of the eurozone. A leaked report from the International Monetary Fund, which came into the public domain yesterday, suggested that the eurogroup has massively underestimated the amount of debt relief which Greece will need in order to remain solvent and the single currency is likely to suffer today as a consequence. The next 24hrs promise to be a seminal session for the single currency – if Greece’s lawmakers vote down a third bailout then expect bloodshed – in the meantime, the euro is forecast to trade on a NEGATIVE footing. The GBP EUR exchange rate stands at 1.4199.

6-Year High GBP/CAD Exchange Rate Predicted, BoE Ahead

CANADIAN DOLLAR (currency:CAD). At a time when other central banks including the US Federal Reserve and the Bank of England are considering an interest rate hike, the Bank of Canada is countenancing a rate cut. Analysts forecast that the BoC will trim its key lending rate by 25 basis points this afternoon, so the outlook for the Loonie is NEGATIVE; the GBP CAD exchange rate stands at 1.9868.

Forex Forecasts: US Dollar Recover Losses against Pound (GBP/USD) and Euro (GBP/EUR) Today

Today’s performance from the US DOLLAR (currency:USD) is likely to be determined by Federal Reserve Chair Janet Yellen’s semi-annual testimony to the House of Representative’s Financial Panel committee. Yellen stated last Friday that US interest rates could be on the way up this year and a repetition of this message later today will bring renewed support for the Buck. Friday’s domestic inflation data will inform price action for the Greenback as the weekend approaches. Analysts forecast that the Dollar will trade on a NEUTRAL TO POSITIVE footing moving forward and the GBP USD exchange rate stands at 1.5625.

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TAGS: Dollar Pound Forecasts Euro Pound Forecasts Pound Sterling Forecasts