The Pound Sterling to Euro (GBP/EUR), Pound Sterling to US Dollar (GBP/USD) and Pound Sterling to Canadian Dollar exchange rates are all facing an interesting week of trading ahead with the Bank of Canada (BOC) interest rate decision and influential Gross Domestic Product (GDP) stats due for release.
Wednesday saw the Bank of Canada keep interest rates on hold at 0.75% as many economists had forecast.
Thursday’s European trading began with the Pound Sterling to Euro (GBP/EUR) exchange rate trending lower, while the Pound Sterling to US Dollar (GBP/USD) and Pound Sterling to Canadian Dollar (GBP/CAD) exchange rates climbed ahead of UK Gross Domestic Product (GDP) stats.
Euro (EUR) Exchange Rate (EUR/CAD, EUR/USD, EUR/GBP) Climbs after GfK German Consumer Confidence Survey Hits 13-Year High
Wednesday saw the Pound Sterling to Euro (GBP/EUR) exchange rate soften on account of upbeat German GfK Consumer Confidence data, while the Pound Sterling to US Dollar (GBP/USD) and Pound Sterling to Canadian Dollar (GBP/CAD) exchange rates climbed ahead of US mortgage data and the Bank of Canada’s (BOC) interest rate decision.
The GfK German Consumer Confidence Survey rose from 10.1 to 10.2 in June, rather than falling to 10.0 as forecast. The index recorded a 13 and-a-half year high and was able to offer the Euro to Pound Sterling (EUR/GBP), Euro to Canadian Dollar (EUR/CAD) and Euro to US Dollar (EUR/USD) exchange rates some support.
Tuesday began with the Pound Sterling to Euro (GBP/EUR) exchange rate recording gains as fears that Greece may exit the Eurozone heightened, while the Pound Sterling to US Dollar (GBP/USD) and Pound Sterling to Canadian Dollar (GBP/CAD) exchange rates were trading lower ahead of US Durable Goods Orders and US Consumer Confidence stats.
The US Durable Goods Orders ecostat registered the -0.5% contraction economists had forecast in April, but the March figure was positively revised to 5.1%. Additionally, US Durable Goods Excluding Transportation rose by 0.5% in April rather than the 0.3% prediction.
Greece Call off Brussels Meeting? Euro (EUR) Exchange Rate Tentative
Additionally, the situation in Greece continued to weigh on the Euro and Tuesday’s talk between Greece and its creditors was called off according to several sources.
Enikos stated: ‘The scheduled meeting of the so-called Brussels Group on the Greek bailout has been cancelled. A Greek senior official did not give a reason for the cancellation of the meeting that was due to be held on Tuesday afternoon.’
Could the Bank of Canada (BOC) Defy Forecasts and Cut Rates to Weaken the Canadian Dollar (CAD) Exchange Rate?
However, with mixed forecasts for the Bank of Canada’s interest rate decision on Wednesday, the GBP/CAD exchange rate could be in for an interesting day of trading. While some economists believe the BOC will stand pat on interest rates, others have suggested a recent string of softer-than-forecast Canadian data could encourage the central bank to weaken the Canadian Dollar.
Strategist David Doyle commented: ‘What’s changed is you’re starting to see the data go the other way. The action we’re seeing this week suggests it might be time to put back positions that benefit from a weaker Canadian Dollar.’
Bank of Canada (BOC) Interest Rate Decision Forecast to cause Major CAD/GBP, CAD/USD, CAD/EUR Exchange Rate Movement
The main event for the Canadian Dollar to Euro (CAD/EUR), Canadian Dollar to US Dollar (CAD/USD) and Canadian Dollar to Pound Sterling (CAD/GBP) exchange rates this week will be the Bank of Canada’s (BOC) interest rate decision on Wednesday.
There’s been heavy speculation over whether the BOC will introduce another rate cut after surprising markets earlier in the year with a 25 basis point downward adjustment. However, most economists have forecast the BOC will keep rates at 0.75% in May.
Friday’s forecast to be a major day for the Pound, Canadian Dollar and US Dollar exchange rates with the release of the UK, US and Canadian Gross Domestic Product (GDP) stats. Any favourable growth data could allow the native currency to rally.
US Dollar (USD) Exchange Rate Sensitive to US Durable Goods Orders and Consumer Confidence Data
Meanwhile, the US Dollar exchange rate will be in for a day of choppy trading on Tuesday with the release of US Durable Goods Orders and US Consumer Confidence data. The ecostats are highly influential and could cause some massive US Dollar to Euro (USD/EUR), US Dollar to Canadian Dollar (USD/CAD) and US Dollar to Pound Sterling (USD/GBP) exchange rate movement.
Greece on the Brink of Financial Collapse, Euro (EUR) Exchange Rate Delicate to Talks
Wednesday will bring with it the June German GfK Consumer Confidence Survey which could enable some moderate Euro movement. However, a lot of the Euro’s fluctuations next week are likely to be a result of Greek negotiations. The Greek government is on a tight deadline to reach a deal before the start of June when it’s due to run out of money. Therefore, this next week could be extremely interesting for the Euro to Canadian Dollar (EUR/CAD), Euro to US Dollar (EUR/USD) and Euro to Pound Sterling (EUR/GBP) exchange rates.
The Pound Sterling to Canadian Dollar (GBP/CAD) exchange rate is trading in the region of 1.9146. The Pound Sterling to US Dollar (GBP/USD) exchange rate is trending at 1.5385, while the Pound Sterling to Euro (GBP/EUR) exchange rate is trending in the region of 1.4134..
