Exchange Rate Forecasts

Following the damning testimony from the Governor of the Bank of England on Wednesday, the Pound has been under renewed pressure against the majors amid concerns that UK economic growth will slow to just 1.0%, while a softening labour market and higher prices will lead to a period of stagflation. UK consumer prices breached the [...]

The Pound failed to rally against the majors on Tuesday as the negative sentiment surrounding the UK economy offset the rising inflationary concerns and speculation that the Bank of England can’t afford to cut interest rates in June. UK producer and consumer prices rose well beyond initial forecast in April with the annual rate of [...]

The Pound enjoyed a strong intraday rally against the Dollar on Monday as UK producer prices accelerated at the fastest pace in 22-years last month and showed that manufacturers have little choice but to pass on record high raw material costs to the consumer. The report sparked a mini revival in Sterling sentiment as rising [...]

The Pound rallied against the majors yesterday, rising from a three month low versus the Dollar, while also registering gains against the Euro following an unexpected surge in U.K producer prices. The report from the Office of National Statistics showed that UK factories raised prices at the fastest annual pace since records began in 1986, [...]

Following on from last week, the Pound came under further pressure against the majors, falling to the lowest level since February against the Dollar, amid speculation that the Bank of England will cut interest rates by a further 25 basis points in June. The Monetary Policy Committee, led by the governor Mervyn King, met last [...]

The Pound has struggled against the majors this week as the focus switched to the Bank of England interest rate announcement yesterday and the UK currency plummeted to a near three month low versus the Dollar following speculation of a surprise quarter-point reduction. A recent spate of negative economic reports has undermined the Bank’s optimistic [...]

The Pound has been under real pressure against the majors this week and the UK currency plummeted through the trend support at 1.9650 against the Dollar to close last night at the lowest level in nearly three months. The Pound also fell for a third straight day against the Euro after an industry report showed [...]

The Pound Rose to the highest level since February against the Euro last week but the UK currency relinquished much of the gains yesterday following a disappointing report on service sector growth. An index of business sentiment showed that growth in UK service industries unexpectedly slowed to the weakest pace in five years in April [...]

Following on from last week, the Pound has gained in momentum against the Euro, breaching the 1.2800 barrier on Friday, to record a third weekly advance against its European counterpart amid speculation that the worst of the credit crisis is over and a rebound in risk appetite will return to the market. The FTSE 100 [...]

The Pound has been making steady gains against the Euro over the past week and the UK currency climbed to the highest level in more than an a month yesterday after the Bank of England released its semi-annual financial stability report. The tone and language used in the statement signalled that the worst of the [...]