Exchange Rate Forecasts

Following the unexpected increase in UK consumer price inflation earlier this week, the Pound has been making steady gains against the majors, closing back above 1.4800 against the Euro and gaining a further 0.7% versus the Dollar at 1.8900. The positive sentiment surrounding Sterling continued yesterday following a report on UK retail sales that showed [...]

The market remained relatively unchanged yesterday amid a sparse supply of economic data released both in Europe and the States. Although, the very recent positivity surrounding the Pound continued following a report on UK unemployment and average hourly earnings, which showed that the number of people out of work and claiming benefits unexpectedly fell for [...]

The Pound was given a timely reprieve yesterday and made significant gains against the majors, firming 0.6% against the Dollar to close around 1.8750 and a further 0.4% versus the Euro as UK inflation unexpectedly quickened in August to reach the highest level in nine years. Consumer prices rose to 2.5% year-on-year last month from [...]

The Pound came under further pressure yesterday, dropping 0.3% against the Euro and falling 0.2% versus the U.S Dollar after a report on the UK global trade balance showed that the deficit in goods and services actually widened in July. A sharp decline in exports, partly due to the underlying strength of Sterling, contributed to [...]

Following on from last week, the Pound continued to weaken against the major currencies as the political fiasco surrounding Tony Blair’s resignation reached fever pitch and the renewed interest rate speculation in the States helped push the Dollar. In addition, the Bank of England kept interest rates on hold at 4.75% this month despite a [...]

The focus yesterday fell on the Bank of England interest rate announcement where the MPC elected to hold UK interest rates at 4.75% in September following a surprise increase last month. Economic growth has accelerated at the fastest pace in over two years in the second quarter of this year, which has prompted the government [...]

The positive sentiment surrounding the U.S Dollar continued yesterday amid a host of strong economic data that has rekindled interest speculation in the States as inflation shows signs of accelerating, which has historically prompted the Federal Reserve into action. Firstly, a report from the U.S labour department showed that nonfarm productivity rose 1.6% in the [...]

The Pound slumped against the majors yesterday, slipping 0.7% against the Dollar and a further 0.2% versus the Euro following a mixed bag of UK economic data that put Sterling under pressure in early trading. Firstly, the CIPS services survey dropped to a reading of 56.7 in August, which was significantly lower than expected and [...]

The Euro made significant gains against the majors yesterday, firming a further 0.2% against the Dollar and the Pound on the release of some better than expected inflation data, which only adds to speculation that the ECB will lift interest rates a further 50 basis points before the turn of the year. The Producer Price [...]

Following on from last week, the Dollar was given a temporary reprieve on Friday as the monthly U.S job report showed that the economy added more jobs than expected in August at 128,000 while the unemployment rate fell towards 4.7% from 4.8% in July, suggesting that a strong labour market will sustain consumer spending and [...]