Exchange Rate Forecasts

For the first time this week, there was a glut of significant data released on both sides of the Atlantic yesterday with the Pound coming under further pressure, particularly against the Dollar, despite the release of the Nationwide house price index, which showed that prices only rose by 0.3% in June with the year-on-year growth [...]

The lack of appetite for the Pound continued yesterday despite the relatively positive CBI Distributive Trades Survey, which maintained it’s 18-month high in June as the net balance of 9 percentage points was the same as last month and the highest since December 2004. The apparent pick up in UK retail sales may prove significant [...]

The Euro remained relatively unchanged against the Pound yesterday despite German business confidence jumping to the highest level in 15-years, which provided yet further evidence that the ECB will need to lift interest rates as economic growth accelerates. The Ifo institute in Munich released it’s June confidence index, which actually rose to 106.8, the highest [...]

Following a relatively quiet day in terms of economic data released, the Euro made further gains against the majors after several members of the European Central Bank publicly gave their support for a further tightening of monetary policy before the next scheduled rise in August. In the past 24hrs, two members of the ECB’s governing [...]

Following on from last week, the Dollar continued to rally against Sterling ahead of the FOMC rate announcement this Thursday and we touched new lows towards the latter part of the week, briefly trading under 1.8200 for the first time in two months. Following the untimely death of MPC member David Walton last week, the [...]

The British Pound came under intense pressure yesterday amid the untimely death of David Walton, who was a member of the Bank of England’s monetary policy committee and the sole voice for a rise in UK interest rates over the past two months. As a result of the news, the Pound dropped significantly against the [...]

We witnessed a significant day of market movement yesterday as Sterling came under pressure, particularly against the Euro, following the release of the minutes of the Bank of England’s last MPC meeting and as widely expected, policy makers voted 7-1 in favour of keeping UK interest rates at 4.50%. Once again, David Walton was the [...]

We witnessed another quiet day in terms of market movement yesterday and Sterling continued to remain firm against the Euro despite a less than convincing report from the Chancellor, Gordon Brown, where he announced a record budget deficit for the public sector in the month of May. The UK deficit has expanded to £8.7 billion [...]

Just to re-cap from last week, the Dollar received an unexpected boost on Friday as the U.S Current Account deficit narrowed by much more than forecast in the first quarter, dropping from a record high in the previous three months, led by a modest improvement in the Trade Deficit. There is a sparse supply of [...]

Yesterday, the Pound made further gains against the Dollar and the Euro following the release of the monthly house price survey from the Royal Institution of Chartered Surveyors, which showed that prices had increased dramatically in May and the increase to 20 represented the single biggest rise in over 2 years. House prices account for [...]