Exchange Rate Forecasts

Following on from last week, the Dollar continued to remain resilient against the majors following a relatively poor week in terms of economic data with U.S retail sales falling 0.4% in September, which reflects the significant drop in oil prices over the same period. However, the Dollar managed to plough through the major support level [...]

The Dollar stood firm against the majors yesterday despite a worse than expected report on the U.S trade balance, which showed that the deficit in goods and services actually widened to a record $69.9 Billion in August following a significant rise in energy prices for the same period as the shortfall with China reached an [...]

The Pound advanced yesterday firming 0.2% against the Dollar to halt a 5-day slide and was also marginally higher against the Euro by the close last night following comments from the governor of the Bank of England, Mervyn King, who emphasised that UK inflation remains a concern for policy makers, suggesting a further quarter-point rise [...]

The Dollar continued to make substantial gains against the majors yesterday, strengthening 0.5% against the Euro and a further 0.4% against the Pound as we closed under the major support level at 1.8600 for the first time in nearly 3-months. The recent positive sentiment surrounding the Dollar can be attributed to a mixture of strong [...]

The Pound declined against the majors yesterday, falling 0.3% against the Dollar to close near the major support level at 1.8645 and a further 0.3% against the Euro on the release of some softer than expected inflation data. UK Producer Prices fell for the first time in nine-months in September, which correlates with the significant [...]

Following on from last week, the Dollar continued to make steady gains against the Euro and the Pound on Friday following an upward revision of the August nonfarm payrolls numbers, although the September report showed that the economy added much fewer jobs than anticipated last month. The initial reaction saw the Dollar decline against the [...]

The Pound declined against the majors yesterday, dropping 0.3% against the Euro and a further 0.5% versus the Dollar following the Bank of England’s decision to hold UK interest rates at 4.75% this month as a 24% drop in oil prices since mid-July eased inflationary pressures. It was widely anticipated that the MPC would leave [...]

The Pound held firm against the Euro yesterday following a better than expected report on the UK Service sector, which increased in September after declining for four consecutive months with input and output prices falling back in line with other recent revisions on consumer price inflation. The manufacturing and service sector reports this week have [...]

The Euro made further losses against the Pound yesterday as unemployment in the Euro-zone rose for the first time since November 2003 as concerns of a slowing economy means companies are reluctant to continue hiring. The jobless rate increased to 7.9% in August, marginally higher from 7.8% the previous month and as a result, the [...]

The Dollar came under increased pressure against the majors yesterday, dropping 0.6% against the Euro and a further 0.7% versus the Pound following a combination of strong European data and a worse than expected report on U.S manufacturing. However, the significant drop against Sterling can be attributed to a technical move rather than a negative [...]