Pound Sterling to US Dollar (GBP/USD) Exchange Rate Forecast to Trend Soften despite Safe-Haven Demand
The Pound Sterling to US Dollar (GBP/USD) exchange rate was trending within a tight range on Monday afternoon.
Although a Greek exit from the Eurozone could have a negative impact on British exports, the Pound strengthened versus many of its peers. The appreciation can be linked to a record-high half year advance of 7.0% in New Car Registrations. June’s New Car Registrations increased by a massive 12.9% on the year. The advance in car sales has been linked to increased domestic demand for British made vehicles.
The Pound Sterling to US Dollar (GBP/USD) exchange rate is currently trending in the region of 1.5548.
The US Dollar, meanwhile, strengthened versus its rivals thanks to increased demand for safe-haven assets amid heightened turmoil in Greece. With so much uncertainty as to whether the Hellenic nation will remain part of the currency bloc, and with unknown’s regarding the fallout of a Grexit, trader risk-appetite has all but vanished. The appreciation was pegged back a little, however, after June’s ISM Non-Manufacturing Composite failed to meet with expectations.
The Pound Sterling to US Dollar (GBP/USD) exchange rate was trending within the range of 1.5528 – 1.5598.
Pound Sterling to Canadian Dollar (GBP/CAD) Exchange Rate Forecast to Strengthen as Crude Prices Crash
The Pound Sterling to Canadian Dollar (GBP/CAD) exchange rate gained by around 0.51% on Monday afternoon.
In response to the British New Car Registrations, Mike Hawes, SMMT Chief Executive, said, ‘It is still a great time to buy a new car in the UK, and it is encouraging to see more consumers choosing British models. This is important for the wider economy with 799,000 people now employed across the UK automotive sector, including retail. We anticipate a flatter second half of the year as the market finds its natural running rate.’
The Pound Sterling to Canadian Dollar (GBP/CAD) exchange rate is currently trending in the region of 1.9662.
As a risk-correlated currency, the ‘Loonie’ (CAD) softened versus its peers after Greek’s voted ‘No’ to austerity. Aiding the Canadian Dollar depreciation was oil prices which also crashed in response to the Greek situation. ‘Uncertainty over Greece is bearish for oil. It adds an extra negative factor on top of the turmoil in Chinese financial markets, the recent rise in US drilling rigs, and a potential increase in Iranian oil supply,’ said Olivier Jakob, senior energy analyst at Petromatrix in Zug, Switzerland.
The Pound Sterling to Canadian Dollar (GBP/CAD) exchange rate was trending within the range of 1.9544 – 1.9653 today.
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