Pound Sterling Exchange Rate Current Forecast vs Loonie (CAD) EUR USD

Modified: Thursday, 3 March 2016 12:41 BST - Written by John Cameron

STORY LINK Pound Sterling Exchange Rate Current Forecast vs Loonie (CAD) EUR USD

CAD UPDATE - Canadian Dollar Gains on GDP Results

The Canadian Dollar (CAD) exchange rate was able to strengthen after Canada published some better-than-forecast growth data for December. The nation's economy was shown to have expanded by 0.2% on the month and 0.5% on the year, beating forecasts of 0.1% and 0.0%.

GBP/CAD and USD/CAD declined following the report's release.

Pound Sterling (GBP) Exchange Rate Outlook Neutral to Negative

A dire showing from the latest Purchasing Manager Index survey of the UK manufacturing sector, which pointed to the slowest level of growth in the British factory output for almost three years, threatens to weigh down the POUND STERLING (currency : GBP) in the short term, especially after the latest GDP figures showed that manufacturing was dragging on the UK economy, with consumer spending having to pick up the slack.

Sterling has not suffered unduly from this morning’s result up to this point, but a bout of heavy selling pressure could come at a moment’s notice given the ongoing uncertainty regarding the UK’s potential exit from the EU.

The outlook for the Pound is NEUTRAL TO NEGATIVE.

Canadian Dollar (CAD) Exchange Rate Outlook Neutral to Positive

The CANADIAN DOLLAR (currency : CAD) was given a boost earlier this afternoon when December's Canadian Gross Domestic Product data was published. Analysts had been anticipating that the statistics would reveal economic stagnation, showing a year-on-year growth rate of 0.0%, so the outcome of 0.5% provided the Loonie with a real fillip.

With global oil prices on the way up, (the price of a barrel of Brent Crude touched $37 earlier), the future prospects for the Canadian unit are now NEUTRAL TO POSITIVE.

The GBP CAD exchange rate stands at 1.8792.

Euro (EUR) Exchange Rate Outlook Neutral to Negative

The EURO (currency : EUR) has failed to significantly benefit from this morning’s official data which revealed that the overall level of joblessness in the euroland dropped for the third month on the trot in January.

The overarching fear that the European Central Bank (ECB) may be about to increase the €60 bn per month which it allocates to its Quantitative Easing programme is forecast to weigh down support for the single currency in the lead-up to 10th March.

In the meantime, analysts expect the euro to trade on a NEUTRAL TO NEGATIVE footing and the GBP EUR exchange rate stands at 1.2855.

US Dollar (USD) Exchange Rate Outlook Neutral

Support for the US DOLLAR (currency : USD) flagged during the first half of today’s European session, but has firmed since February’s US ISM Manufacturing Survey was published a short time ago. The result of 49.5 outstripped analysts’ expectations 48.5, leaving open the real prospect that next month’s edition of the closely monitored survey may point to a return to growth.

The short to medium term outlook for the Buck is NEUTRAL and the Pound Sterling US Dollar exchange rate stands at 1.3951 GBP USD.

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 Euro Forecasts Pound Cana Forecasts