Exchange Rate Forecasts

The Pound has come under further pressure this week following a string of negative economic reports, which threatens to undermine the prospect of any further monetary tightening as the UK current account deficit widened to a 16-year high while economic growth was revised down in the last quarter. However, the Pound has remained largely unchanged [...]

The Pound remained largely unchanged against both the Euro and the Dollar yesterday despite a host of negative economic reports, which gave way to speculation that growth in the property market has peaked as prices fell 0.4% in March. Earlier in the session, the Pound came under increased pressure against the majors and dropped briefly [...]

The Dollar continued to slide against the Euro yesterday but by the close of trading last night was 0.2% higher versus the Pound despite a weaker-than-expected report on U.S consumer confidence. Following a particularly soft report on retail sales and consumer sentiment earlier in the month, the Conference Board’s index into consumer confidence was widely [...]

The Dollar came under renewed pressure against the majors yesterday, dropping 0.3% versus the Euro and the Pound following a report on the U.S property market, which showed that new homes sales unexpectedly fell in February. Following the rebound in another gauge of house prices last week, speculation had been building that the biggest slump [...]

Following on from last week, the Pound has continued to make robust gains against the Euro, rising to the highest level in a month versus the single currency following a band of positive economic reports in the UK. A gauge of retail price inflation, which provides the best indication of consumer price expectations, rose to [...]

The recent positive sentiment surrounding the Pound continued yesterday as strong growth in the retail sector pushed the UK currency to a six-week high against the Dollar while also gaining 0.2% versus the Euro by the close of trading last night. Following the Bank of England’s decision to lift interest rates on three separate occasions [...]

Initially, the Pound declined 0.2% against the Euro yesterday and also dropped modestly versus the U.S Dollar following the release of the minutes from the Bank of England’s last policy meeting, which all but diminished the prospect of a further rate rise in the near-term. The monetary policy committee voted 8-1 in favour of keeping [...]

The Pound advanced yesterday and made significant gains against the majors, firming 1.0% versus the Dollar and a further 0.9% against the Euro as UK inflation unexpectedly accelerated in February to the second fastest pace in over 10-years. Consumer prices rose slightly above expectations at 2.8% year-on-year last month while retail price inflation accelerated to [...]

The Pound managed to make considerable gains against the majors yesterday, firming 0.2% versus the Euro and a further 0.3% against the Dollar as we closed above trend resistance at 1.9435 last night and from a technical perspective, it looks increasingly likely that we will continue to climb higher. There was a distinct lack of [...]

Following on from last week, the Dollar continued to decline against the majors, dropping to a three month low versus the Euro as recent reports provide fresh concerns of slowing U.S economic growth. On Friday, the University of Michigan’s preliminary index of sentiment showed that U.S consumer confidence fell this month following an increase in [...]