Pound Sterling Exchange Rate Forecast vs EUR USD CAD - Tax Worries Reduce GBP Appeal

Modified: Tuesday, 5 April 2016 16:55 BST - Written by David Woodsmith

STORY LINK Pound Sterling Exchange Rate Forecast vs EUR USD CAD - Tax Worries Reduce GBP Appeal

The Pound has made a large number of losses today, owing to the validity of the UK government breaking up the British Virgin Islands' tax haven status being called into question.

Pound Sterling (GBP) Exchange Rate Outlook Negative

The POUND STERLING (currency : GBP) suffered on Friday following a weaker than expected Purchasing Managers Index survey of the domestic manufacturing industry.

Concerns that the UK steel industry might be about to experience widespread job losses due to price pressures from the East added to the downbeat mood enveloping the UK economy.

Uncertainty reigns in Britain and the Pound is forecast to trade on a NEAGTIVE footing in the short to medium term as a consequence.

Euro (EUR) Exchange Rate Outlook Neutral to Negative

The EURO (currency : EUR) outperformed both the Dollar and the Pound as last week’s session drew to a close.

A relatively strong PMI survey of the eurozone’s manufacturing sector helped the shared currency on Friday, but doubts persist regarding the euro’s ability to continue its upward trajectory thanks to the European Central Bank’s ongoing Quantitative Easing programme.


The outlook for the shared currency is NEUTRAL TO NEGATIVE and the GBP EUR exchange rate stands at 1.2491.

US Dollar (USD) Exchange Rate Outlook Neutral to Positive

The US DOLLAR (currency : USD) benefitted from Friday’s stronger than anticipated American job creation data.

The March Non-Farm Payrolls statistics showed that, once again, over 200,000 new jobs were generated in the world’s leading economy last month.

The Sterling Dollar exchange rate ended the week in the low 1.4200s and the outlook for the Buck is NEUTRAL TO POSITIVE.

Canadian Dollar (CAD) Exchange Rate Outlook Neutral to Negative

The CANADIAN DOLLAR (currency : CAD) has had the better of the Pound since the start of the year.

The Loonie is now over 20c stronger against Sterling than it was in December; however this leaves the Canadian unit susceptible to a technical retracement, particularly with the slump in global oil prices which marked the second half of last week.

Friday’s Canadian employment sector data could determine the medium term performance of the Loonie, but in the meantime the Canadian tender is forecast to trade with a NEUTRAL TO NEGATIVE bias.

The GBP CAD exchange rate stands at 1.8515.

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