Pound Sterling Currency Forecast Predictions verses EUR, USD and CAD

Modified: Friday, 26 February 2016 16:45 BST - Written by John Cameron

STORY LINK Pound Sterling Currency Forecast Predictions verses EUR, USD and CAD

Pound Sterling (GBP) Exchange Rate Outlook Neutral to Negative

The POUND STERLING (currency : GBP) has been outperformed by all of the other sixteen most actively traded global currencies this week after suffering severe weakening factors.

The UK unit continues to be weighed down by a potential European Union exit, dubbed a 'Brexit', with the uncertainty of the final outcome causing significant volatility; if opinion polls leading up to the 23rd June referendum begin to suggest that a Brexit is on the cards, then the move against the Pound will pick up momentum.

The outlook for Sterling is NEUTRAL TO NEGATIVE.

Euro (EUR) Exchange Rate Outlook Neutral to Negative

The EURO (currency : EUR) got the better of the Pound once again yesterday, sending the GBP EUR exchange rate down into the low 1.2600s.

The shared currency continues to benefit from the European Central Bank’s failure to up its Quantitative Easing programme in December, but this may change at next week’s meeting.

Concerns regarding the creditworthiness of France and Italy’s banks also weighs down the euro which is now expected to trade on a NEUTRAL TO NEGATIVE footing moving forward.


The GBP EUR exchange rate stands at 1.2620.

US Dollar (USD) Exchange Rate Outlook Neutral to Negative

The US DOLLAR (currency : USD) improved to its strongest level against the Pound for some seven years during early trade yesterday.

However, the data coming out of the States is not backing up this move – yesterday afternoon saw the publication of a dire domestic services sector survey, as well as tamer than anticipated January New Home Sales data and weekly Mortgage Approval statistics.

With analysts now pricing in a likelihood that US interest rates will remain at 0.50% for the remainder of the year, the outlook for the Greenback is NEUTRAL TO NEGATIVE; the GBP USD exchange rate stands at 1.3940.

Canadian Dollar (CAD) Exchange Rate Outlook Neutral to Negative

Yesterday afternoon’s weekly US oil inventory data has heaped renewed pressure on the CANADIAN DOLLAR (currency : CAD).

Both the overall Crude Oil and Cushing OK Inventory showed at significantly higher than anticipated levels and this evidence of further over-supply caused the price of a barrel of Brent Crude to slump into the $32s.

The Loonie has had a stellar run against Sterling during the past fortnight, but for technical and fundamental reasons, this may be coming to an end.

The forecast for the Canadian tender is NEUTRAL TO NEGATIVE and the GBP CAD exchange rate stands at 1.9238.

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TAGS: American Dollar Forecasts Canadian Dollar Forecasts Euro Forecasts Pound Ster Forecasts