Exchange Rate Forecasts

The Pound made some unlikely gains against the Euro yesterday and also enjoyed a large intraday move versus the Dollar after an industry report showed that UK producer prices rose at the fastest annual pace since 1991. UK factory gate inflation climbed 6.2% from this stage in 2007, compared with 5.9% in February and the [...]

Following on from last week, the Pound recorded another weekly loss against both the Euro and the Dollar amid speculation that the Bank of England will continue cutting interest rates as economic growth stalls. The UK currency plummeted to fresh record lows for three consecutive days against the Euro as reports showed a 2.5% drop [...]

The Pound made some unlikely gains against the Euro yesterday, rebounding from a record low versus the single currency after the Bank of England warned that inflation will rise further this year, as the MPC cut interest rates by a quarter of a percentage point. The Pound rose for the first time in a week [...]

The unrelenting decline in Sterling sentiment saw the UK currency plunge to a fresh record low against the Euro yesterday and breach the 1.2500 barrier for the first time as the market anticipates a quarter-point cut in UK interest rates. The Pound has struggled to make gains against most of the 16 most actively traded [...]

The dovish sentiment surrounding the Bank of England interest rate decision has driven the Pound to the lowest level on record against the Euro after a host of negative economic reports boost speculation of a rate cut. The UK currency also plunged to a six week low versus the Dollar amid reports that house prices [...]

As we tentatively approach the Bank of England interest rate announcement on Thursday, the Pound came under further pressure yesterday, registering losses against virtually all of the 16 most actively traded currencies amid heightened speculation of a UK interest rate cut this week. The instability throughout financial markets combined with the deteriorating outlook for the [...]

Following on from last week, the increased sense of stability that has returned to financial markets has helped Dollar sentiment in recent weeks as traders appetite for risk aversion subsided and U.S stocks rallied. Nevertheless, a barrage of weak economic data suggests that the U.S economy is in the grip of a recession and the [...]

The speculation surrounding an April interest rate cut has hampered Sterling sentiment this week and the UK currency may struggle to make gains in the build up to the April 10th meeting as the ongoing credit crisis threatens to send the economy into recession. The Bank of England have lowered interest rates on two occasions [...]

The negative sentiment surrounding the UK economy and the heightened sense of expectation in the build up to the MPC rate announcement saw the Pound extend its losses versus the Dollar yesterday. The fundamental lack of economic indicators released this week saw the Pound plummet to a fresh record low against the Euro but the [...]