Exchange Rate Forecasts

The Pound rallied to the highest level in over a month versus the Euro yesterday, closing well above the 1.2700 level last night as the declining sentiment surrounding the European economy offsets the dramatic fall in the Nationwide house price index. UK home values fell by the most since records began in 1991 as tighter [...]

The uncertainty surrounding the outlook of the UK economy has weighed on Sterling sentiment in recent weeks but the Pound rose back above the 1.9800 level against the Dollar yesterday while closing well above the resistance at 1.2600 versus the Euro. The fundamental lack of UK economic data meant that the focus switched to the [...]

The Pound succumbed to weaker housing data on Monday and the UK currency recorded a two day slump against the Dollar yesterday after a separate report from the British Banker’s Association showed that mortgage approvals plunged 39% from this stage in 2007. An earlier report from Hometrack Ltd showed a further decline in UK home [...]

Following on from last week, the Pound rose to the highest level in almost a month versus the Dollar after oil prices peaked at a record $135 a barrel while a smaller than expected decline in UK retail sales prompted speculation that the economy will pull through the credit slump. The dramatic increase in energy [...]

Following on from last week, the Pound rose to the highest level in almost a month versus the Dollar after oil prices peaked at a record $135 a barrel while a smaller than expected decline in UK retail sales prompted speculation that the economy will pull through the credit slump. The dramatic increase in energy [...]

The Pound surged to the highest level in the three weeks against the Dollar yesterday as oil prices peaked and a UK government report showed that retail sales declined by less than anticipated in April. A dramatic slump in house prices, rising inflationary pressures and the impact of the credit crunch has weighed on consumer [...]

The Pound extended its run of gains against the Dollar yesterday amid fears that oil prices will breach the $150 a barrel this year while the annual pace of UK inflation will continue to accelerate and force the Bank of England to keep interest rates unchanged over the coming months. The minutes from the Central [...]

Following the fundamental lack of UK economic data released yesterday, the Pound took advantage of broad Dollar weakness to record the biggest intraday rally in over a month and close above 1.9600 last night. The UK currency also made significant gains against the Canadian and Australian Dollar as the market began to absorb the Bank [...]

The Pound failed to rally against the majors today, dropping back under 1.9500 versus the Dollar, despite a surprisingly positive report on the UK housing market, which showed that prices actually rose 1.2% in May as homeowners refused to succumb to the worsening market environment. According to the report from Rightmove plc, the average selling [...]

Following on from last week, the renewed appetite for the Pound saw the UK currency bounce back from an intraday low of 1.9363 versus the Dollar following the release of the Bank of England’s quarterly inflation report. The tone and language used by the Governor, Mervyn King, showed the policy makers are more concerned with [...]