March 17, 2016 - Written by Frank Davies
STORY LINK Pound Sterling Exchange Rate Forecast Rises Today vs EUR USD CAD
The Pound has climbed against most of its major currency competitors today, despite the Bank of England (BoE) predicting that increased trade ties will lead to the UK falling along with China when it comes to growth.
UK Brexit Fears Weigh on Pound Sterling (GBP) Exchange Rate Long Term Outlook
The POUND STERLING (currency : GBP) continues to be weighed down by the nagging fear that the UK electorate may be about to vote to exit the European Union. The latest poll of polls suggests that the ‘Remain’ campaign leads the race by the slimmest of margins – 51% to 49%. While the potential for a Brexit remains a real one, and with yesterday’s Budget containing significant downward revisions to the UK’s 2016 GDP growth forecast, the Pound is expected to trade on a NEUTRAL TO NEGATIVE footing.
GBP-USD Neutral Negative Outlook
The US DOLLAR (currency : USD) has been slaughtered in the global currency markets today. The Pound Dollar exchange rate was trading at barely above the 1.4000 GBP USD threshold yesterday afternoon, but the pair has improved to an intraday high of above 1.4500 today as investors priced-in last night’s downbeat message on interest rates from the US Federal Reserve. The Sterling Dollar exchange rate stands at 1.4480 and the outlook for the Buck is NEUTRAL TO NEGATIVE.
Foreign Exchange News: Canadian Dollar Outlook Today
The CANADIAN DOLLAR (currency : CAD) has performed strongly against Sterling so far today. Last night’s assertion by the US Federal Reserve that its interest rate increasing path will be ‘gradual’ has helped the Loonie while the pronounced increase in global oil prices in recent weeks has added to the upside. Tomorrow’s Canadian inflation data will need to show that local prices are increasing at a decent clip in order to maintain this positive momentum; in the meantime, the outlook for the Canadian tender is NEUTRAL TO POSITIVE. The GBP CAD exchange rate stands at 1.8828.
FX Predictions: Euro (EUR) Fluctuates on ECB Decision
The EURO (currency : EUR) continues to defy gravity in the global FX markets. The European Central Bank’s decision to increase its Quantitative Easing scheme from €60bn a month to a heady €80bn per month has not, up to this point, unduly held back the shared currency. However, FX insiders suggest that when these additional asset purchases kick in next month, the shared currency may suffer considerable downside. With increasing speculation that the ECB may not yet have exhausted its arsenal of monetary loosening tools it seems that the relative strength of the Euro could be dented further. Analysts expect the euro to trade on a NEUTRAL TO NEGATIVE footing moving forward and the GBP EUR exchange rate stands at 1.2780.
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TAGS: Currency Predictions Pound Australian Dollar Forecasts Pou Forecasts