Exchange Rate Forecasts

Following on from last week, the Pound took advantage of broad Dollar weakness to rise to the highest level in 2-months and perhaps more significantly the UK currency finally broke through the major resistance at 1.9850 to signal a further move to the upside. The neutral tone of the FOMC rate announcement last week combined [...]

The tentative price action surrounding the Dollar yesterday saw the U.S currency remain little changed against the majors as the market prepared for FOMC rate announcement last night, where the Open Market committee elected to keep interest rates unchanged at 2.0% following an aggressive period of monetary easing. The outcome of the two day meeting [...]

The Pound declined against the Euro yesterday after an industry report showed that UK mortgage approvals slumped to the lowest level since Labour came to power in 1997 as traders scaled back the probability of a UK interest rate hike over the coming months. The Pound slumped against the majority of the 16 most actively [...]

The Pound enjoyed a strong rally against the majors last week, rising to a high of 1.9755 versus the U.S Dollar, after UK retail sales increased by the most in 22-years last month and reinforced speculation that the Bank of England could raise interest rates to combat inflation. However, the Pound failed to hold on [...]

The Pound rallied to the highest level in more than three weeks versus the Euro yesterday while the UK currency also enjoyed a strong intraday move against the Dollar after a report showed that retail sales in May rocketed by the most since records began in 1986. The report from the Office of National Statistics [...]

The Pound continued to decline against the Euro yesterday, dropping towards the weekly low at 1.2570, following the release of the minutes from the Bank of England’s June policy meeting where it emerged that the committee voted 8-1 in favour of holding interest rates this month. Policy makers did acknowledge the persistent inflationary concerns that [...]

The Pound declined heavily against the majors yesterday, falling by the most in two weeks versus the Euro while also revisiting the support at 1.9500 against the Dollar after UK consumer prices increased beyond expectations in May and fuelled speculation that an increase in rates will stifle economic growth. The hotly anticipated report from the [...]

The Pound rallied against both the Dollar and the Euro yesterday amid speculation that UK inflation will exceed the Bank of England’s target in May and consumer prices may edge above 3.0% for a second month in a row. The UK currency staged a strong intraday move against the Dollar, rising to a high of [...]

Following on from last week, the Pound surged higher against almost all of the 16 most actively currencies except the Dollar as oil retreated and U.S consumer prices increased beyond initial estimates in May. Despite a weakening labour market and reports that UK economic growth stalled in the first quarter, the Pound rallied higher against [...]

The recent revival in Sterling sentiment was severely tested yesterday as the UK currency recorded the biggest intraday slide in nearly a month versus the Dollar after a report from the Royal Institution of Chartered Surveyors showed that the slump in house prices exceeded initial expectations. The RICS housing index showed that the number of [...]