Exchange Rate Forecasts

Following on from last week, The Dollar came under increased pressure on Friday following the release of the advanced GDP report for the second quarter and as widely expected, economic growth has slowed significantly in the States from 5.6% in the first quarter to just 2.5% in the second and it now looks evermore likely [...]

The volatility surrounding the U.S Dollar continued yesterday as a report from the Federal Reserve showed that U.S economic growth was slowing in the second half of the year while inflationary pressures are at modest level. Therefore, the possibility of a further tightening of U.S interest rates next month looks increasingly unlikely and that sentiment [...]

The Euro has been making gains against the Pound this week after we failed to break the resistance level at 1.4675. As we predicted, we have subsequently continued to trade down under 1.4600 and the Euro remained firm yesterday despite business confidence in Germany dropping by more than expected in July. The Ifo Index reported [...]

The Dollar has staged an unlikely rally against the Pound this week and we saw further gains yesterday following the release of some key data in the U.S with Consumer Confidence unexpectedly rising to a three month high in July. It was widely anticipated that confidence amongst the American consumer would decline to a reading [...]

Following a quiet day in terms of economic data released, there was some renewed appetite for the Dollar in early trading yesterday as investor’s looked for a relative safe haven amid continued turmoil in the Middle East and speculation increased that the Federal Reserve would lift interest rates one last time in August before pausing [...]

Following on from the last week, the Pound made significant gains against the Euro and the Dollar as speculation intensifies that the Bank of England will need to raise UK interest rates for the first time in eleven months to cope with the threat of rising inflation. A strong pick-up in retail sales and the [...]

The recent positive sentiment surrounding the Pound can be attributed to speculation that the Bank of England may finally be ready to shift monetary policy for the first time in almost a year. There was some significant data released in the UK yesterday that reaffirmed those suggestions with Retail Sales rising by twice as much [...]

Amid the continued turmoil in the Middle East, the U.S Dollar has made significant gains against the majors, firming to the highest levels against the Euro since mid April as speculation has intensified that the Federal Reserve will need to carry on raising interest rates in order to keep inflation in check. However, the Dollar’s [...]

There was a host of significant data released both in Europe and the U.S yesterday as the Pound looked to make further gains against the majors, firming 0.4% against the Dollar and up 0.6% versus the Euro. The positive sentiment surrounding Sterling increased following the release of the June Consumer Price Index, which showed that [...]