Exchange Rate Forecasts

The Pound continued to decline against the majors yesterday, briefly falling through the major support level of 1.4250 versus the Euro to record the lowest level of exchange since April 2006 despite a slightly stronger-than-expected report on the UK economy. The final estimate of gross domestic product showed that economic growth had accelerated 3.1% in [...]

Following on from last week, the Pound dropped to the lowest level in well over a year versus the Euro but managed to claw back above the $2.00 barrier against the Dollar as an unexpected rise in retail sales offset criticism of the BoE governor, Mervyn King. With the pace of consumer spending showing few [...]

Following on from last week, the Pound dropped to the lowest level in well over a year versus the Euro but managed to claw back above the $2.00 barrier against the Dollar as an unexpected rise in retail sales offset criticism of the BoE governor, Mervyn King. With the pace of consumer spending showing few [...]

The Pound lost further ground against the Euro yesterday but rallied back above the $2.00 barrier versus the Dollar as a host of positive economic reports offset the criticism of the Bank of England governor, Mervyn King, as he explained the Central Bank’s reaction to the Northern Rock fiasco. The Pound received an unexpected and [...]

The Pound continued to decline against the Euro yesterday, trading through 1.4300 as we look set to test the major support level at 1.4250, the lowest since April 2006, amid growing evidence that the Bank of England will eventually need to cut UK interest rates. Although the fiasco surrounding Northern Rock has been the catalyst [...]

The Dollar fell against both the Pound and the Euro last night following the Federal Reserve’s decision to lower its benchmark interest rate by half a percentage point in an attempt to pre-empt an economic slump and thusly spur the biggest rally in U.S stocks since 2003. The chairman of the Fed, Ben Bernanke, has [...]

The Pound continued to decline for the fourth straight day against the Dollar, dropping through the $2.00 barrier while also falling below 1.4400 versus the Euro as the impact of the credit crunch surrounding Northern Rock and other financial institutions continues to weigh on sentiment. The overwhelming decline of the Pound looks set to continue [...]

Following on from last week, the Pound fell to the lowest level in well over a year versus the Euro and has also fallen through the $2.00 barrier against the U.S Dollar after the UK mortgage lender, Northern Rock, received the largest amount of emergency funding in over 30 years. As a result, the Pound [...]

Just a few weeks ago most economists were expecting the Bank of England to raise borrowing costs to 6% at the September meeting. Stock markets were strong, inflation risks were still deemed to outweigh growth concerns, the housing market was firm and credit was still easily accessible. Unsurprisingly with this backdrop, sterling was enjoying a [...]

The recent negative sentiment surrounding the Pound gathered momentum last night as the UK currency fell to the lowest level in 14-months versus the Euro amid reports that UK lender Northern Rock plc sought emergency funding from the Bank of England. Britain’s fifth largest mortgage lender requested a short-term credit line with the loan to [...]