Pound Sterling Latest FX Exchange Rate Forecast vs EUR USD CAD

March 11, 2016 - Written by Minesh Chaudhari

STORY LINK Pound Sterling Latest FX Exchange Rate Forecast vs EUR USD CAD

Pound Sterling (GBP) Exchange Rate Outlook Neutral to Positive

The POUND STERLING (currency : GBP) has traded steadily so far today in spite of a weaker than anticipated set of January UK Trade Balance data, published earlier.

The monthly trade deficit of almost £3.5 bn raised further alarm bells, with analysts suggesting that the statistic proves that the local economic recovery is, at best, unbalanced. However, with oil prices recovering, the potential for a Bank of England interest rate increase before the end of the year may return to the fore.

The Pound is therefore expected to perform on a NEUTRAL TO POSITIVE footing in the short term.

Euro (EUR) Exchange Rate Outlook Neutral to Negative

The EURO (currency : EUR) recorded surprise gains following yesterday afternoon’s European Central Bank (ECB) monetary policy announcement.

Conventional Wisdom dictates that a large scale increase to Quantitative Easing should have weakened the euro, but comments from ECB President Mario Draghi which suggested that his Bank has now completed its long-term interest rate cutting cycle, helped the shared currency yesterday.

However, the euro has sustained losses on the day today as investors focus on the QE increase, up €20 billion per month and the outlook for the euroland tender is NEUTRAL TO NEGATIVE.


The GBP EUR exchange rate stands at 1.2855.

US Dollar (USD) Exchange Rate Outlook Neutral to Positive

The US DOLLAR (currency : USD) was helped on the day yesterday by a stronger than anticipated set of weekly US jobs data. The figures built on last week’s encouraging US Non-Farm Payrolls job creation data and many FX insiders forecast that the US economic picture will continue to improve throughout 2016.

Futures markets are now pricing in a likelihood that the US Federal Reserve will up its key interest rate as soon as July, so the outlook for the Greenback is NEUTRAL TO POSITIVE.

The GBP USD exchange rate stands at 1.4298.

Canadian Dollar (CAD) Exchange Rate Outlook Neutral to Positive

The price of a barrel of Crude Oil broke back above the $41 threshold for the first time this year earlier today and the CANADIAN DOLLAR (currency : CAD) benefitted as a consequence.


The Reserve Bank of Canada’s decision earlier this week to leave its headline interest rate on hold also helped the Canadian unit and the forecast for the Loonie is now NEUTRAL TO POSTITIVE.

The GBP CAD exchange rate sits at 1.8949.

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