Exchange Rate Forecasts

Good Morning…..and have a very Merry Christmas, The Pound lost further ground against both the Euro and the Dollar yesterday amid a worse-than-expected report on the UK current account balance, which showed that the deficit had widened by more than anticipated in the third quarter. Sterling dropped 0.3% against the Dollar and a further 0.2% [...]

It was a mixed day for the Pound yesterday, declining modestly against the Euro but gaining 0.1% versus the Dollar following the release of the minutes from the Bank of England’s last policy meeting where the nine-strong committee voted unanimously to keep UK interest rates on hold at 5.0%. The current benchmark rate is at [...]

The Pound continued to rally yesterday following a better-than-expected report from the Royal Institute of Chartered Surveyors, which showed that UK house sales had risen to highest level in two years for November. As a result, Sterling rose 0.7% against the Dollar to trade above 1.9700 overnight and a further 0.3% versus the Euro as [...]

Initially, the Pound declined against the Dollar yesterday, dropping 0.4% by the close of trading last night and it seems the increased volatility can be attributed to a winding down of dollar positions ahead of the holiday period. However, overnight Sterling found some support and made widespread gains against both the Euro and the Dollar [...]

The Dollar received an unexpected boost yesterday and managed to make some unlikely gains, firming 0.5% against the Euro and 0.3% versus the Pound following a surprisingly positive report on U.S retail sales. In stark contrast to retail activity in the UK, sales jumped 1.0% in the figures for November, which was much more than [...]

The Dollar came under further pressure against the majors last night, falling 0.6% versus the Pound after the Federal Reserve elected to hold U.S interest rates at 5.25% for the fourth straight month as policy makers voted 10-1 in favour of no change. Although the outcome of the FOMC meeting was largely factored into the [...]

The Pound made significant gains against the Dollar yesterday, firming 0.3% by the close of trading last night in the build up to the release of the Consumer Price Index this morning, which is expected to show UK inflation running at the highest level in nine years for the month of November. Consumer prices are [...]

Following on from last week, the Dollar managed to claw back some gains against the majors on Friday after falling to lowest level versus the Pound in 14-years earlier in the week. The Dollar rallied following a better-than-expected report on nonfarm payrolls, which showed that the U.S economy added more new jobs than anticipated in [...]

The Euro failed to make any significant gains against the majors yesterday, falling flat versus the Dollar and climbing just 0.2% against the Pound despite the ECB’s decision to lift European interest rates for the sixth time this year. However, it was well factored into the market that policymakers would lift rates by a further [...]

The Pound declined for the second day in succession yesterday as UK factory production unexpectedly fell in October, primarily due to a strong Pound, which is obviously having a negative impact on UK exports. Manufacturing output dropped 0.4% from September despite expectations of a more modest increase on the month and a separate report from [...]