Pound Sterling: Latest Currency Forecast GBP vs EUR NZD CAD

March 9, 2016 - Written by John Cameron

STORY LINK Pound Sterling: Latest Currency Forecast GBP vs EUR NZD CAD

Pound Sterling (GBP) Exchange Rate Outlook Neutral to Positive

The POUND STERLING (currency : GBP) was helped by comments from Bank of England (BoE) Governor Mark Carney to the UK Parliament’s Treasury Select Committee yesterday. The BoE Chief told British parliamentarians, among other things, that a UK exit from the European Union represents the, ‘biggest domestic risk to financial stability.’

These words may be pushing the boundaries of the Bank’s independence, but nonetheless the outlook for Sterling is now NEUTRAL TO POSITIVE.

Euro (EUR) Exchange Rate Outlook Neutral to Negative

The EURO (currency : EUR) was provided with a boost early yesterday when the latest seasonally adjusted euroland Gross Domestic Product data printed at a higher than anticipated year-on-year 1.6%.

However, the shared currency still shed support against the Pound and the US Dollar on the day as investors fretted about a possible extension to its Quantitative Easing programme from the European Central Bank (ECB) tomorrow, with many economists predicting a €10 billion per month increase.

The outlook for the euro is NEUTRAL TO NEGATIVE and the GBP EUR exchange rate sits at 1.2910.

New Zealand Dollar (NZD) Exchange Rate Outlook Neutral to Negative

The NEW ZEALAND DOLLAR (currency : NZD) was weighed down by more dire data from its number one export destination yesterday.

Official statistics have hinted at a real slowdown in China’s economy during recent months, but February figures showing the largest monthly fall in Chinese exports over six years, suggested that this decline may have accelerated.

Analysts now forecast that the Kiwi Dollar will perform on a NEUTRAL TO NEGATIVE footing and the GBP NZD exchange rate stands at 2.1078.

Canadian Dollar (CAD) Exchange Rate Outlook Neutral to Positive

The CANADIAN DOLLAR (currency : CAD) has been helped in early trading this week by a further improvement for global oil prices.

The move above $40 per barrel for the price of a barrel of Brent Crude yesterday was good news for investors holding CAD-denominated assets, but a weak showing from January’s Buildings Permits figures does not bode well for Canada’s building sector.

The outlook for the Loonie is NEUTRAL TO POSITIVE and the GBP CAD exchange rate stands at 1.9068.

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TAGS: Canadian Dollar Forecasts Euro Forecasts New Zealand Dollar Forecasts Pound S Forecasts