Exchange Rate Forecasts

The Pound came under some pressure in early trading yesterday following the release of July’s Consumer Price Index, which indicated that UK inflation had moderated slightly in the last month. Prices dropped by 0.1% from June with the annual inflation rate falling back towards 2.4% and speculation that the Bank of England will continue raising [...]

The Pound held firm against the Dollar and the Euro yesterday despite a report on Producer Prices, which suggested that UK manufacturers had more scope to pass on higher commodity prices to the consumer. The Bank of England lifted interest rates for the first time in over a year in August in order to bring [...]

Following on from last week, the Dollar managed to make back further gains against the Pound on Friday following a string of significant economic and inflation data, which suggested that the Federal Reserve may need to continue raising interest rates following a pause at 5.25% early last week. U.S Retail Sales rose by more than [...]

The Pound came under pressure early yesterday following reports that police had foiled a terrorist plot to blow up a UK airline. The authorities raised the alert status to ‘critical’ after unveiling a plot to blow up several UK airlines heading for the States. The currency markets reacted to the news as traders sought relative [...]

The Pound may come under severe pressure today as the national alert was raised to ‘critical’ following a foiled plot to blow up a UK airline. Sterling fell by the most in two weeks and those of you buying either euros or dollars may be well advised to go to market sooner rather than later. [...]

The U.S Dollar remained relatively unchanged last night after the Federal Reserve held interest rates at 5.25% for the first time since June 2004 after 17-consecutive rate hikes. The accompanying statement seemed to suggest that Fed policy makers are not so concerned with rising inflationary pressures, as the committee voted 9-1 in favour of keeping [...]

The Pound continued to make further gains against the Dollar yesterday and rose to an eight month high versus the Euro despite weaker than expected industrial production data as output increased by just 0.1% in June, which was much lower than forecast and a significant drop from May. The robust growth in the manufacturing sector [...]

Following on from last week, the Pound has strengthened to the highest levels against the Dollar and the Euro this year after the Bank of England unexpectedly raised UK interest rates by 25 basis points for the first time since last July. According to many investors, there was only a 15 per cent that rates [...]

The Bank of England unexpectedly raised UK interest rates yesterday for the first time in nearly two years, sighting rising inflationary pressures and faster economic growth for the seemingly premature move. The market had only factored in a 15% chance that policy makers would lift interest rates by a quarter point to 4.75% and thusly [...]

The Pound made further gains against the Euro and the Dollar yesterday, despite the lack of any significant data released in the UK as we approach the Bank of England interest rate announcement at midday today. Over the past month, speculation has intensified that the BoE will raise borrowing costs for the first time in [...]