Exchange Rate Forecasts

The Pound was once again susceptible to a barrage of weak economic reports as the UK currency fell towards the trend support at 1.9650 versus the Dollar after another gloomy report from the Bank of England. UK mortgage approvals declined in March to the lowest level in almost a decade as banks and lenders withdrew [...]

The recent revival in Sterling sentiment was severely tested yesterday as the UK currency was once again susceptible to weak economic data as UK house prices fell by the most in three years this month. The average cost of a home in Britain decreased 0.6% from March, the most since December 2004, to £173,100 as [...]

Following on from last week, the Pound took advantage of broad Euro weakness to consolidate above the 1.2500 level on Friday after an EU report showed that money supply into the Euro-zone gre less than anticipated in March. The European Central Bank rely on the M3 index as a gauge of inflation and the 3 [...]

The Pound has been struggling over the past few trading sessions and the UK currency fell a further 0.2% versus the Dollar yesterday as we look set to revisit the trend support around 1.9650. Nevertheless, the Pound took advantage of broad Euro weakness to trade higher by the close last night despite reports that UK [...]

The Pound has endured a torrid week against the majors, rising towards the $2.00 barrier versus the Dollar on more than one occasion before a barrage of disappointing reports brings the market back towards the support at 1.9750. The Group of Seven nations has recently declared that Finance Ministers were against volatile fluctuations in the [...]

The fallout from the Bank of England’s decision to swap £50 billion worth of UK government bonds for mortgage securities was greeted with cynicism from the market as the Pound plunged against both the Euro and the Dollar amid suggestions that the Central Bank is following in the Fed’s footsteps. The Bank of England and [...]

Following on from last week, the Pound succumbed to speculation that the Bank of England will reduce interest rates by a further 25 basis points in May following a 2.5% drop in house prices and news that retail sales had contracted for the first time in three years. Nevertheless, a surprisingly positive report from the [...]

The Pound has plunged to a record low against the Euro on three separate occasions this week while also recording significant losses versus the Dollar amid speculation of a back-to-back interest rate cut in May as economic growth stalls and the credit crisis deepens. Nevertheless, the UK currency bounced back above the 1.2400 level yesterday [...]

The Pound’s dramatic and unrelenting decline against the Euro continued yesterday as the UK currency sank to yet another record low, breaching the 1.2400 level for the first time since the Euro’s inception in 1999. A combination of bleak economic reports in the UK and faster inflation in the Euro-zone contributed to the move as [...]

The Pound fell to a fresh record low against the Euro yesterday and also paired fresh losses versus the majority of the 16 most actively traded currencies following reports that consumer prices rose at a slower pace than forecast in March and the slump in housing deteriorated to the worst level since 1978. The UK [...]