Exchange Rate Forecasts

Sterling came under pressure yesterday as Britain’s Trade deficit in goods and services remained largely unchanged at a record level of £5.7 Billion, providing further evidence that UK exports won’t be able to fuel economic growth into the second quarter. In addition, UK Retail Sales showed the first decline in 5 months according to the [...]

We experienced a relatively quiet day yesterday as Sterling stood firm amid suggestions that House Price inflation across the UK slowed in February, according to the office of the Deputy Prime Minister, despite recent surveys from Halifax and Nationwide stating the opposite. In addition, Input and Output Producer Prices came out in line with expectations [...]

The Euro weakened against the majors last week following the ECB’s unexpected announcement that there is a ‘high probability’ interest rates will remain at 2.50% next month and we have traded towards 1.4400 against Sterling this morning following the release of worse than expected French Industrial production data. However, with the German Investor’s confidence report [...]

Sterling rallied against the majors yesterday with the release of UK House Prices rising for the eighth month in ten in March as the property market continues to show growth in the first quarter. As expected, the Bank of England kept UK interests rates at 4.50% and the ECB also revealed that their current monetary [...]

Following better than expected unemployment data on Tuesday, the Euro was given another boost yesterday as PMI services in the euro-zone maintained February’s highest level in 5 years at 58.2, giving further evidence of growth in the service sector. Coupled with that, Retail Sales in Europe rose 0.5% in February, which was in line with [...]

In early trading yesterday, the Euro pushed higher against the majors as better than expected unemployment figures and strong inflation data push us ever closer towards the 1.4300 level. The euro-zone unemployment rate slipped to 8.2% in February against 8.3% the previous month and Producer Prices also increased in line with expectations, rising 0.5%. As [...]

In the past 24hrs we have seen some significant market movement particularly with regards the Dollar as ISM Manufacturing, which many analysts were predicting would expand in March, came out at a much slower pace in the first quarter, due in part to rising prices and a fall in new orders. As a result, the [...]

Following on from Friday, Consumer Confidence in the UK unexpectedly fell last month, leading to concerns that the Bank of England may still have room to cut interest rates and Sterling was hampered further against the Euro after the EC Sentiment Index showed that confidence among European Executives and consumers rose to it’s highest level [...]