Exchange Rate Forecasts

The Pound came under a modest amount of pressure yesterday, falling 0.3% versus the Dollar and 0.2% against the Euro following the release of the Consumer price index, which showed that UK inflation had risen to a 10-year high in December. However, the figures failed to exceed expectations as the core CPI rose to 3.0%, [...]

The Pound advanced yesterday to consolidate its recent gains against the majors by firming an additional 0.2% versus the Euro to trade at the highest level in two and a half years. Sterling found support as a gauge of inflation showed that producer output prices rose 0.2% in December, the highest since August last year, [...]

My apologies for the lack of market updates over the past few days, I have been off work with a virus. Although, some might call it man-flu, normal service will now be resumed.Following on from a turbulent week, the Pound continues to make widespread gains against the majors following the Bank of England’s surprise decision [...]

The Euro continued to slide against the majors yesterday, holding near a six-week low versus the Dollar and falling an additional 0.4% versus the Pound following a surprisingly negative report on German retail sales, which unexpectedly fell 0.3% in November. In previous reports, highstreet spending has remained relatively strong over the past quarter but it [...]

Following on from the last week, the Dollar made substantial gains against Sterling amid a barrage of positive economic reports, which has shifted expectations away from an interest rate cut early this year and dimmed speculation that the dramatic slowdown in the property market will lead the U.S economy into recession. The support level at [...]

The Pound managed to rebound sharply against the Euro yesterday but fell for the second day in succession versus the dollar despite a host of positive economic reports. Firstly, the CIPS survey into the UK service sector rose to the highest level in nine years for the month of December, which suggests that the robust [...]

Following a poor start to 2007, the Dollar advanced yesterday and made significant gains against the majors, firming 0.8% versus the Euro and a surprising 1.1% against the Pound following a particularly positive report on U.S manufacturing. The ISM index rose to 51.4 in December from 49.5 the previous month and with a reading above [...]

The Pound managed to make significant gains against the majors yesterday, firming an additional 0.1% versus the Euro and a further 0.7% against the Dollar despite a worse-than-expected report on UK manufacturing. The purchasing managers index dropped to a reading of 51.9 in December as both input and output prices rose at a reduced rate, [...]

Following on from last year, the dollar has declined against both the Euro and the Pound and dropped to the lowest level in over three weeks on speculation that the ISM manufacturing report this afternoon will show that growth in the sector stagnated in December. In addition, there is some hugely significant employment data released [...]