The Pound Sterling to US Dollar (GBP/USD) exchange rate advanced by around 0.28% on Wednesday morning. The Pound Sterling to Canadian Dollar (GBP/CAD) exchange rate is currently trending in the region of 1.9438.
After a long period of declination as the result of trader profit-buying, the Pound recovered some of its losses on Wednesday morning. This is the results of traders readjusting Sterling positions amid fear that the depreciation was unjustified. BBA Loans for House Purchase, due for publication later on Wednesday morning, has the potential to provoke Sterling volatility.
The US Dollar, meanwhile, softened as traders digest the disappointing results from May’s Durable Goods Orders. The US asset avoided depreciation on Tuesday when the data was published thanks to hawkish comments from Federal Reserve Governor Jerome Powell, who stated that there is a possibility the fed will hike rates twice in 2015.
The Canadian Dollar, meanwhile, softened versus its major rivals as the prospect of a dual Fed rate hike caused traders to fear widening disparity between the North American neighbours.
The Pound Sterling to US Dollar (GBP/USD) exchange rate is currently trending in the region of 1.5790.
The Pound Sterling to Canadian Dollar (GBP/CAD) exchange rate is currently trending in the region of 1.9431.
Yesterday…
The Pound Sterling to US Dollar (GBP/USD) exchange rate softened by around -0.45%. The Pound Sterling to Canadian Dollar (GBP/CAD) exchange rate was trending with a limited range on Tuesday afternoon.
Disappointing British data results failed to buck the Sterling downtrend initiated by trader profit-buying. Although the Pound’s depreciation was somewhat slowed by positive ecostats in Europe, a lack of influential domestic data has seen the British asset slump versus its peers.
The US Dollar strengthened versus its major peers thanks to heightened demand for safe-haven assets amid tension in Greece. Although Durable Goods Orders failed to impress, advancements in other US data supported demand for the US Dollar.
The Canadian Dollar, meanwhile, softened versus many of its rivals in response to falling crude oil prices. The ‘Loonie’ (CAD) avoided a larger declination, however, thanks to tracking US Dollar gains.
The Pound Sterling to US Dollar (GBP/USD) exchange rate is currently trending in the region of 1.5743.
The Pound Sterling to Canadian Dollar (GBP/CAD) exchange rate is currently trending in the region of 1.9486.
Pound Sterling (GBP) Exchange Rate Forecast to Dive against the US Dollar after CBI Data Disappoints
After a few days of trader profit-buying, following last week’s significant Sterling appreciation, the Pound slumped versus its currency competitors. Tuesday has seen a continuation of the depreciation after domestic data failed to impress. The latest Industrial Trends Survey from the Confederation of British Industry cooled from -5 to -7 in June. The slowing industrial trends have been linked to Sterling overvaluation.
‘Improving momentum in the Eurozone is being offset by the effect of the strengthening Pound on UK manufacturers’ overseas sales and margins,’ Rain Newton-Smith, CBI Director of Economics, said.
US Dollar (USD) Exchange Rate Forecast to Rally against the Pound on Safe-Haven Demand
With tensions in Greece reaching boiling point as time runs out for the Hellenic nation to secure bailout funds, trader risk-appetite dampened significantly. The US Dollar advanced versus its major peers thanks to its safe-haven qualities. US Durable Goods Orders declined by -1.8% in May, falling beyond the median market forecast -1.0%. However, growth in business investment, which is good news for manufacturing, has caused the US Dollar to extend gains versus its major rivals.
Canadian Dollar (CAD) Exchange Rate Forecast to Soften against the ‘Buck’ (USD) as Crude Prices Drop
With a complete absence of domestic data to provoke movement, the ‘Loonie’ has been subject to oil price changes. The declining oil prices have been attributed to cooling demand from China. ‘Although China’s figures picked up slightly, we continue to believe that growth remains weak as PMI figures are not moving past 50. We expect no change to crude demand from Japan and China in the near future with manufacturing PMI figures being weak,’ Phillip Futures said.
Pound Sterling to US Dollar (GBP/USD) Exchange Rate Forecast to Hold Losses, Pound Sterling to Canadian Dollar (GBP/CAD) Exchange Rate Forecast to Hold Steady on Lack of Data
Given that the US asset is holding significant gains over its British counterpart, the Pound Sterling to US Dollar (GBP/USD) exchange rate is likely to hold losses for the remainder of Tuesday’s European session. The Pound Sterling to Canadian Dollar (GBP/CAD) exchange rate, meanwhile, is likely to hold steady for the remainder of Tuesday’s European session with a lack of domestic data to drive changes.
The Pound Sterling to US Dollar (GBP/USD) exchange rate was trending within the range of 1.5761 – 1.5828.
The Pound Sterling to Canadian Dollar (GBP/CAD) exchange rate was trending within the range of 1.9436 – 1.9505.
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