Pound vs US Dollar Exchange Rate Trends Higher, GBP CAD Forecast to Fluctuate
If you're looking to make an international money transfer, we recommend TorFX.
At the close of last week things were looking pretty bleak for the Pound and the British currency failed to recover losses even as the US University of Michigan Confidence Index declined unexpectedly. The measure slumped from 81.8 in July to 79.2 in August.
An increase to 82.5 had been forecast.
However, fresh life was breathed into the GBP/USD pairing on Monday as investors responded to comments issued by Bank of England Governor Mark Carney with great enthusiasm.
The Pound Sterling to US Dollar (GBP/USD) exchange rate achieved a high of 1.6738.
The GBP/USD exchange rate was little-changed following the release of the UK’s Rightmove House Price report.
The Rightmove figures showed a -2.9% month-on-month decline in property values.
House prices in London dropped by -5.9% on a monthly basis and Rightmove said the slump was steeper than historical figures would lead them to expect.
Rightmove Director Miles Shipside said this of the report; ‘Buyers and sellers are becoming increasingly aware about personal finances, given that the cost of mortgages are going up and regulators are trying to bring availability down. This limits what buyers are willing to able to pay, and helps moderate sellers’ price expectations.’
During Monday’s North American session the US NAHB Housing Market Index was shown to have climbed from 53 to 55 in August, stagnation had been forecast.
The Pound Sterling to Canadian Dollar (GBP/CAD) exchange rate also drifted higher on Monday.
At the close of last week the ‘Loonie’ was bolstered by a notable upward revision to Canada’s employment figures.
The nation’s unemployment rate was shown to have declined to 7.0% in July as the economy added more than 41,000 positions – a bit of a difference to the previous estimate of jobs growth of just 200.
The Canadian Dollar consequently advanced on almost all of its major currency counterparts and largely held these gains over the weekend.
However, the increase wasn’t universally praised and economist Randall Bartlett asserted; ‘July’s jobs gain remains dominated by part-time employment and seasonally sensitive sectors, which call into question the sustainability of the employment pickup going forward’.
The Pound’s bullishness meant that the Pound Sterling to Canadian Dollar exchange rate was able to achieve a high of 1.8226.
Pound Sterling to US Dollar (GBP/USD) Exchange Rate Forecast
The Pound Sterling to US Dollar exchange rate could fluctuate over the next few days in response to minutes from both the Bank of England’s and Federal Open Market Committee’s recent policy meetings.
If the Fed’s minutes are dovish in tone the US Dollar could falter.
Similarly, if the BoE minutes show that even one policy maker voted in favour of increasing interest rates the Pound could surge against rivals like the US Dollar.
Pound Sterling to Canadian Dollar (GBP/CAD) Exchange Rate Forecast
The main market-moving reports for Canada this week include the nation’s Wholesale Sales figures and Consumer Price Index.
Signs that inflation moved further away from the Bank of Canada’s target levels would be Pound supportive.
The Pound Sterling to US Dollar (GBP/USD) exchange rate is trading in the region of 1.6715.
The Pound Sterling to Canadian Dollar (GBP/CAD) exchange rate is trading in the region of 1.8207.