Exchange Rate Forecasts

Following on from the last week, the Pound managed to rebound sharply against the majors by the close of trading on Friday after falling to a fresh six-week low versus the Euro earlier in the week. The positive sentiment surrounding the Pound stemmed from the release of the minutes from the Bank of England’s last [...]

The Dollar managed to rebound sharply against the Euro yesterday, gaining 0.2% against the single currency but by the close of trading last night was modestly lower versus the Pound following the release of the minutes from the Federal Reserve’s January policy meeting. The Open Market Committee seemingly remained vigilant on inflation last month with [...]

Initially, the Pound declined against the majors, dropping a further 0.2% against both the Euro and the Dollar following the release of the minutes from the Bank of England’s last policy-setting meeting. The monetary policy committee voted 7-2 in favour of keeping interest rates on hold at 5.25% this month with the two dissenters favouring [...]

The Pound managed to make significant gains yesterday, rising 0.2% against the Dollar and a surprising 0.3% versus the Euro as we bounced off the major support level around 1.4800 and it now looks increasingly likely that Euro sellers would be well advised to take advantage of the current rate. The unlikely rally was sparked [...]

The Pound came under further pressure yesterday, falling an additional 0.2% against both the Euro and the Dollar despite the apparent lack of significant economic reports. However, with UK house prices showing the lowest monthly rise in over five years in February, the Pound began the day on the back foot as it seems increasingly [...]

Following on from last week, the Dollar continued to decline against the majors, dropping to a fresh six-week low versus the Euro following a string of poor economic reports that have provided yet further evidence that the Federal Reserve will keep interest rates steady over the coming months. Activity in the U.S industrial sector slowed [...]

Following the Bank of England’s quarterly inflation report earlier this week, the Pound had managed to make some modest gains against the majors as the governor of the Central Bank, Mervyn King, indicated that a further quarter-point rate increase maybe necessary this year. However, any positive momentum was crushed in early trading yesterday as Sterling [...]

The Pound declined heavily against the majors yesterday, dropping through the major support level at 1.4975 versus the Euro following a report on consumer prices, which showed that UK inflation slowed by more than expected in January. Following the Bank of England’s decision to keep interest rates unchanged last week, it was widely anticipated that [...]

By the close of trading last night, the Pound had made modest gains against both the Euro and the Dollar following a report on UK factory-gate prices, which unexpectedly rose by the most in six months in January. The producer price index, which provides a gauge of UK inflation, saw output prices increase 0.3% last [...]

Following on from last week, the Pound declined heavily against majors following the decision from the Bank of England to leave UK interest rates on hold at 5.25% as policy makers wait to assess the impact of three previous rate hikes since August. Although the outcome was widely anticipated, the Pound came under increased pressure [...]