Exchange Rate Forecasts

It is beginning to look increasingly likely that the recent Dollar decline is looking overly exaggerated and therefore, we can expect a correction to take place at some point over the coming weeks with many analysts arguing that fair value for the currency is priced around the 1.80 – 1.84 levels. Further evidence of this [...]

Following on from last week, the Dollar received an unexpected boost on Friday afternoon following new record lows against the majors and touching 1.9000 against Sterling for the first time this year. It can be argued that the Federal Reserve’s intention to have a weaker Dollar in order to make U.S exports more attractive to [...]

We had a plethora of significant data released yesterday both in Europe and the States as the Dollar reacted violently to weaker than expected Retail Sales data and dropped sharply to trade at 1.8900 this morning, yet another yearly low against Sterling. Following on from robust growth in Sales in March, forecasters were anticipating a [...]

The beleaguered U.S Dollar was given some respite last night as the Federal Reserve lifted interest rates for the 16th month in succession and gave the greenlight for further rate rises in the future but only if the economic data supports the view that the U.S economy is accelerating faster than expected. It was widely [...]

The theme continued yesterday as the seemingly defenceless U.S Dollar slumped once again, hitting a new 28-year low against the Canadian Dollar and falling to yet another yearly low against the Euro, despite positive data coming out of the States with Wholesale Inventories increasing by 0.5% in March. However, it can be argued that the [...]

In the past 24hrs, Sterling has extended its biggest weekly gain against the Euro since December last year as UK Factory-gate prices rose by the most in seven months in April. Ahead of the UK inflation report tomorrow, speculation has continued to grow that the Bank of Englandwill need to lift interest rates in the [...]

The recent decline of the Dollar continued on Friday as a government report showed that the U.S economy added fewer jobs than expected in April, which further increased speculation that the Federal Reserve will raise interest rates just twice more before pausing at 5.25%. Nonfarm Payrolls, a monthly figure released on Friday afternoon, showed that [...]

Following on from yesterday and the Euro received a significant boost as the ECB convened to announce their latest policy on euro-zone interest rates. As widely expected, Jean Claude Trichet, the chairman of the ECB, kept interest rates on hold at 2.50% in May but in the following press conference he gave the clearest indication [...]

Following on from yesterday, the Euro rallied on the release of better than expected unemployment data in the Euro-zone, which showed a slight improvement in March, dropping to 8.1% from 8.2% in February. Coupled with a seemingly buoyant labour market, the Euro-zone service sector PMI is released this morning and forecasters are predicting a sharp [...]

There was some significant data released in the UK yesterday with Business Optimism rising to its highest level in almost a year as the CIPS Manufacturing Index jumped to 54.1 in April against 50.8 last month and was well ahead of market expectations. As a result, Sterling strengthened significantly against the majors, closing above 1.4500 [...]