Exchange Rate Forecasts

The recent negative sentiment surrounding the Pound continued yesterday as the UK currency plummeted to a fresh 2 1/2 year low against the Euro following the release of the Bank of England’s quarterly inflation report. The tone and language used in the statement seemed to suggest that the Central Bank will cut interest rates at [...]

Following the overwhelming decline of Sterling on Monday, the UK currency managed to rebound modestly against the Dollar yesterday and also stemmed the losses versus the Euro following reports that UK inflation unexpectedly rose in October. Consumer prices climbed above the Bank of England’s 2.0% target and to the highest level since June following an [...]

The Pound declined considerably against the majors yesterday, dropping through the support at 1.4220 versus the Euro and closing well under 2.0700 versus the Dollar despite reports that UK producer prices rose at the fastest annual pace in 12-years. So called factory-gate inflation rose 3.8% year-on-year in October following a 2.8% increase the previous month [...]

Following on from last week, the positive sentiment surrounding the Pound saw the UK currency rally to a fresh record high against the Dollar before reports on Friday that shares in Barclays plc were temporarily suspended after the stock price fell by 9.1%. As a result, the Pound declined heavily against all 16 of the [...]

The Pound rose to yet another 26-year high versus the Dollar last night and also remained largely unchanged against the Euro despite a softer report on UK house prices and an uneventful Bank of England rate announcement. The monetary policy committee, led by the governor, Mervyn King, kept its benchmark interest rate unchanged at the [...]

The Pound’s dramatic appreciation against the Dollar showed no signs of slowing yesterday as the UK currency rose above 2.1000 during the U.S trading session and to the highest level in 26-years. In terms of economic data, the Pound found some support as the UK shop price index for the month of October showed persistent [...]

The Pound drove higher against the ailing U.S Dollar yesterday and traded at a fresh 26-year high overnight, although the UK currency lost further ground versus the Euro amid reports that both the GDP estimate and the BRC retail sales monitor were weaker than the previous month. In addition, the governor of the Bank of [...]

The Pound snapped a seven day winning streak against the Dollar yesterday while also remaining largely unchanged versus the Euro following yet another round of poor economic data as growth in UK service industries grew at the slowest pace in nearly five-years. An index of services fell to a reading of 53.1 in October from [...]

Following in from last week, the dramatic and unrelenting decline of the Dollar saw the U.S currency plummet to a fresh 26-year low against the Pound while also testing record lows at 1.4500 versus the Euro following the Fed’s decision to lower interest rates to 4.50%. Although the outcome of the FOMC meeting was largely [...]

The unrelenting decline of the Dollar continued yesterday as the U.S currency fell to a fresh 26-year low against the Pound as the reaction following the FOMC statement on Wednesday suggested traders had interpreted the comments as more dovish than hawkish. The Federal Reserve elected to cut U.S interest rates to 4.50% in October, the [...]