Exchange Rate Forecasts

Following on from last week, the Pound rocketed higher against the Dollar on Friday, rising to a high of 1.7993 by the close of trading while the UK currency also made gains versus a basket of currencies as the overextended decline in the pair finally started to correct. However, the downside risks surrounding the outlook [...]

The Pound broke below $1.7500 versus the Dollar for the first time since June 2006 yesterday while the UK currency continued its upward move versus the Euro after a survey from the Bank of England showed that UK inflation expectations surged to a new record high of 4.4%. In addition, the Governor of the BoE, [...]

The Pound again took advantage of broad Euro weakness, rising above 1.2500 by the close of trading last night, while the UK currency also made robust gains against the Australian Dollar despite two separate reports indicating that the UK economy will go through a recession later this year. The National Institute of Social & Economic [...]

The Pound remained largely subdued against the majors yesterday, although the UK currency stood firm around €1.2450 versus the Euro despite reports that UK house prices fell further than initial estimates in August as tighter lending conditions hampered sales. According to a report from the Royal Institution of Chartered Surveyors, the number of property lenders [...]

The tumbling Pound is on course for the worst year since the end of the last recession and despite falling more than 10% already this year, the New York based hedge fund company International Foreign Exchange Concepts Inc, said yesterday that the Pound is still about 20% overvalued against the Dollar despite the recent move. [...]

Following on from last week, the gloomy outlook surrounding the outlook for the UK economy combined with Chancellor Darling’s reckless comments in the Guardian newspaper conspired to drive the Pound 2% lower against the majors as the UK currency touched a fresh record low versus the Euro. Credit Suisse overnight index swaps have gone from [...]

The Pound rebounded from a record low against the Euro yesterday but the UK currency slumped to a fresh 2-year low versus the Dollar after the Bank of England and European Central Bank kept interest rates unchanged at their current levels. The UK monetary policy committee, led by the Governor Mervyn King, held the benchmark [...]

The Pound fell close to the lowest level since April 2006 against the Dollar and the outlook for the UK currency versus the Euro remains subdued after a report from the Nationwide Building Society showed that consumer sentiment fell to the lowest level in at least four years. Recent estimates indicate that the UK economy [...]

The Pound slumped for a sixth consecutive day against the Dollar, dropping under 1.7800 earlier in the session, while the UK currency also fell to a fresh record low versus the Euro despite the Prime Minister’s plans to revive the UK property market. Gordon Brown promised an injection of £1 billion sooner than initially planned [...]

The Pound’s unrelenting decline against the majors continued yesterday as the UK currency fell below $1.8000 versus the Dollar for the first time since April 2006 following reports that mortgage approvals had slumped to the lowest level in nine years. A report from the Bank of England illustrated the deteriorating outlook for the economy after [...]