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Forecast for the Week

Pound to Euro Under Brexit Spotlight

Could sterling be set for further losses against the euro?

Pound to euro rate after breakdown in cross-party talks The pound to euro rate continues to be largely dictated by Brexit. We recently witnessed GBP/EUR reach as high as the mid 1.17s, only around half a cent away from a two year high. The pound's gains were based on the fact that Theresa May was trying to put together a deal that would be accepted by the Labour Party. The deal would mean the UK would have access to the customs union until the next...
Sterling Declines Ahead of EU-UK Trade Negotiations

Canadian dollar boosted – Canada dodges Trump’s metal tariff

The Canadian Dollar has gained in value over the past few days against most major currency pairs, after some positive news for both Canada and Mexico has been announced regarding the impending US metals tariffs. US President, Donald Trump recently threatened to impose tariffs on metals imported into the US from all countries. His plans consist of a 25% tariff on steel imports and a 10% tariff on aluminium imports which would be very bad news for Canada which is why the currency lost value...
Pound Sterling Forecast – What Will Move GBP Rates in June?

Pound to Canadian Dollar rates still rising (Joshua Privett)

Like the US Dollar the Canadian Dollar is currently suffering against the Pound, with Pound to Canadian Dollar exchange rates breaching new 5 month highs. The Pound's rally, if you haven't been in tune with the news this week, has been attributed to the sudden and euphoric announcement of an election in the UK. Contrary to what many are looking at, this rally is not simply because markets prefer a Conservative government, which is currently performing 24 points above what Labour is managing to put up...
Pound Sterling Forecast – What Will Move GBP Rates in June?

USD/CAD and EUR/CAD exchange rates the focus for the day

The long awaited US interest rate decision will be released today.  With the US being the largest economy in the world, and a significant proportion of of global debt being denominated in US Dollars, this decision will likely affect all major currencies. For the Canadian Dollar, the two major currencies in question which will be swinging wildly as a result, will be USD/CAD and EUR/CAD (to a lesser extent GBP/CAD). USD/CAD has already come under pressure and may fall below 1.32 soon, and EUR/CAD however,...
Pound Remains Strong Against the Euro as Eurozone Debt Builds

Pound Euro forecast and the impact of the Conservative leadership election

Boris vs Jeremy: The affect on the Pound to Euro rate We have had a very busy end to the week with Boris Johnson and Jeremy Hunt now the last two candidates in the race for the Tory leadership election. Johnson won the ballot with a total of 160 votes. Meanwhile, Jeremy Hunt managed to get 75 votes in total. We are now just a month away before the next official Tory Prime Minister is announced. The expected date is July 22nd so we may see...
GBP to USD Forecast: Record Job Losses for the US as Coronavirus Takes Hold

Pound to US Dollar forecast: What will move GBPUSD levels this week?

Pound to US Dollar rate under strain The pound to US dollar exchange rate is likely to come under some scrutiny this week, with a series of releases to move the currency markets. Expectations are for the GBP/USD exchange rate to come under influence from a number of different sources, including both Brexit and also more global factors. On the US dollar, there are also a series of domestic issues to contend with, including the prospect of a slowing economy leading to the US cutting interest...
Canadian Dollar Saved by Inflation Target Being Met but Outlook Looks Worrying

NAFTA deal still far from sewn up

US threatens non-approval on NAFTA deal if there is no firm proposal in place in three weeks. The North American Free Trade Agreement (NAFTA) is currently in the process of being renegotiated. NAFTA is a free trade deal between the Sates, Mexico and Canada. Trump has made very clear he is unhappy with the current deal and has called it "the worst trade deal in history." The results of the new negotiations could have huge ramifications fro the Canadian Dollar, the US is Canada's largest trading partner. If...
Pound to Canadian Dollar Drifts Lower as Global Sentiment Improves

Best rate to buy Canadian Dollars with Pounds this week (Tom Holian)

The rate to buy Canadian Dollars with Pounds is now trading at its best level in a week in what has been a rather mixed period in terms of economic data. UK GDP which was published on Wednesday showed that growth in the UK stayed firm at the expectation of 1.7%. The estimate was the first release for the second quarter and as this quarter covered both the triggering of the Brexit negotiations and the general election the data announcement was key for what happened to...
Pound to Canadian Dollar Drifts Lower as Global Sentiment Improves

GBPCAD rates break 1.70 – where next?

I wrote earlier this week about GBPCAD breaking 1.70 and so it has passed. The pound remains under pressure and the Canadian economy will continue to be supported by their main trading partner the US. The Loonie and the Canadian economy have had a rough period with the economy there flagging under the pressure of the Alberta Oil Sands fires plus the knock on impact of this event on their economy. Expectations for the future are that the price of Oil could weaken further...
Pound Sterling Forecast – What Will Move GBP Rates in June?

Pound wobbly against Canadian Dollar as we await UK inflation data (Joshua Privett)

Pound to Canadian Dollar exchange rates have experienced a wobbly beginning to the day as we wait for UK inflation data to be released this morning. Initially Asian trading brought in some issues and then when the baton was passed to European trading this morning when it opened the deflation on the exchange rates became much more visible. The reason why inflation data at the moment is having an exaggerated effect even before the news is released, can be explained with an assessment of recent Bank...