Exchange Rate Forecasts

The Pound made robust gains against the majors yesterday, rising 0.2% versus the Euro and by the close of trading last night had broken through the $2.00 barrier against the Dollar following a stronger-than-expected report on UK house prices. The Nationwide index showed that prices actually doubled expectations in June despite initial forecasts for prices [...]

The Pound failed to test the $2.00 level yesterday and by the close of trading last night had fallen 0.1% on the session despite a particularly hawkish rhetoric from the deputy governor of the Bank of England, Sir John Gieve. In the meeting from the BoE’s last policy meeting, Gieve along with the governor, Mervyn [...]

The Dollar remained largely unchanged against the majors yesterday, holding just under the $2.00 level versus the Pound and closing last night 0.1% lower against the Euro following another round of poor U.S housing data. Sales of new homes fell 1.6% to an annual rate of 915,000 in May, which provides an indication that demand [...]

The Euro managed to claw back some modest gains against the Pound and also rose versus the U.S Dollar as German consumer confidence unexpectedly leaped to the highest level in six months in June. The index of sentiment jumped to a reading of 8.4 from 7.4 the previous month and suggests that increased confidence in [...]

The Dollar remained largely unchanged against the majors yesterday, dropping a modest 0.1% versus the Pound despite a host of positive economic reports, which provides a further insight into the renewed optimism in the U.S manufacturing sector. The Philly Fed index is just the latest regional survey to show substantial growth in factory activity over [...]

The positive sentiment surrounding the Pound continued yesterday as the UK currency rose a further 0.3% against the Dollar and was up 0.2% versus the Euro by the close of trading last night following a pickup in UK house prices. Despite the pace of growth slipping to slowest pace in five months throughout London, prices [...]

The Pound remained largely unchanged against the majors yesterday, closing back under 1.9700 versus the U.S Dollar despite an initial positive move after a report showed that UK retail sales growth accelerated beyond expectations in May. Sales climbed 0.4% last month following a modest decline in April as lower unemployment, rising house prices and increased [...]

The renewed optimism for the Pound was severely tested yesterday as the UK currency fell 0.2% against the Dollar and a further 0.1% versus the Euro as a report on the labour market showed that wage growth remained subdued in the first quarter of the year. The annual growth rate of UK average hourly earnings [...]

The Pound has managed to make robust gains against the majors this morning following a hawkish rhetoric from the Governor of the Bank of England, Mervyn King, who has stated that the MPC may need to continue raising interest rates in the short-term. In a speech to business executives in Cardiff last night, King emphasised [...]

The Euro managed to make marginal gains against the Pound yesterday and also advanced 0.2% higher versus the U.S Dollar as we build up to the ECB interest rate announcement this lunchtime. The governing council are widely expected to lift interest rates by a further 25 basis points with the benchmark lending rate rising for [...]