Exchange Rate Forecasts

The recent downside volatility surrounding the Pound continued yesterday as the UK currency, still reeling from news that consumer price inflation had remained unchanged in November, succumbed to reports that Bank of England policy makers voted unanimously to cut interest rates this month. The nine-member monetary policy committee all elected to lower the benchmark lending [...]

The resilience of the Pound has surprised many traders in recent weeks as the UK currency held stubbornly above 2.0100 versus the Dollar and clung to the 1.4000 level against the Euro following the Bank of England’s decision to lower interest rates for the first time in two years. Concerns over a renewed credit crunch [...]

The surprisingly positive movement of the Pound over the past week has seen the U.K currency remain largely unchanged against the Euro while consolidating on the recent gains made versus the Dollar despite the Bank of England’s decision to lower interest rates for the first time in two years. The majority of the market expected [...]

The tension surrounding the FOMC rate announcement last night saw traders tentatively place bets on the possibility of a 50 basis point cut in U.S interest rates as the Dollar remained little changed against the majors in the build-up to the decision. However, the Federal Reserve decided to lower interest rates by just 25 basis [...]

The resilience of the Pound has been a big surprise over the past few trading sessions, particularly since the Bank of England cut interest rates for the first time in two years as falling home values and rising prices weighed heavily on consumer sentiment. In addition, the impact of the credit crunch led to a [...]

Following on from last week, the Pound managed to stem any further losses against the majors and recovered for a second day in a row despite the Bank of England’s decision to lower UK interest rates for the first time in two-years. The monetary policy committee cut the benchmark lending rate by 25 basis points [...]

The negative sentiment surrounding the Pound continued yesterday as the UK currency plummeted to the lowest level in four years versus the Euro and also dropped below 2.0300 against the Dollar as we build up to the Bank of England interest rate announcement this lunchtime. A recent spate of poor economic reports have increased the [...]

The volatility surrounding the Pound increased yesterday as the UK currency relinquished much of the earlier gains against the majors as economic data was mixed and provided little insight into the Bank of England interest rate decision on Thursday. However, UK retail sales increased at a faster pace than anticipated in November as stores offered [...]

The Pound rebounded against almost all of the 16 most actively traded currencies yesterday, rising back above 1.4000 versus the Euro while remaining largely unchanged against the Dollar following reports that UK manufacturing output rose above initial forecasts last month. The PMI survey on factory production increased to a reading of 54.4 in November from [...]

Following on from last week, the Dollar appeared to make some gains against the majors but the renewed bearish sentiment surrounding the U.S currency means that further downside movement is likely over the coming weeks as we build up to the FOMC rate announcement on the 11th December. A barrage of negative economic reports combined [...]