Pound Sterling Forecast vs USD NOK CAD Limited

May 19, 2016 - Written by John Cameron

STORY LINK Pound Sterling Forecast vs USD NOK CAD Limited

The Pound has lessened its movement against a number of peers today, due to excessive profit-taking by investors.

Hawkish Federal Reserve Minutes Provoke US Dollar Appreciation

The minutes of last month’s US Federal Reserve policy meeting were published last night and the relative value of the US Dollar (currency : USD) showed a significant movement as a consequence. The Fed took a decidedly go-ahead stance in its commentary, suggesting that if economic data ahead of June’s policy meeting is relatively strong, then another US interest rate hike is on the cards.

The memo noted that, ‘a range of recent indicators, including strong job gains, points to additional strengthening of the labor market. Inflation has continued to run below the Committee's 2 percent longer-run objective, partly reflecting earlier declines in energy prices and falling prices of non-energy imports. Market-based measures of inflation compensation remain low; survey-based measures of longer-term inflation expectations are little changed, on balance, in recent months.’

The minutes also revealed that the decision to maintain America’s benchmark interest rate at its current banding of 0.25% - 0.50% at April’s get-together was not unanimous, with policymember Esther George voting for a 25 basis point increase. In spite of the relatively go-ahead nature of the Fed minutes, the US Dollar (currency : USD) lost ground against the Pound Sterling (currency : GBP) on the day, with the GBP USD exchange rate trading up above the 1.4600 level just before last night’s New York closing bell.

Crude Oil Prices Cooled on US Inventories, CAD and NOK Exchange Rates Decline

Elsewhere, weekly data from Energy Information Administration (EIA), published yesterday afternoon, pointed to a surprise increase in America’s commercial crude oil inventories of 1.3m barrels; oil sector analysts had forecast that the result would show another decline, as has been the pattern in recent weeks.

The price of a barrel of Brent Crude momentarily edged lower when the statistic was published, before recovering some of its lost ground. The oil-driven Norwegian Krone (currency : NOK) and Canadian Dollar (currency : CAD) are now forecast to trade on a neutral to negative footing in the near-term.

International Money Transfer? Ask our resident FX expert a money transfer question or try John's new, free, no-obligation personal service! ,where he helps every step of the way, ensuring you get the best exchange rates on your currency requirements.

TAGS: American Dollar Forecasts Canadian Dollar Forecasts Norwegian Krone| Forecasts