Exchange Rate Forecasts

The revival in global stock markets continued to bolster Sterling sentiment yesterday as the Pound rallied towards the highest level in a week versus the Dollar, while the UK currency also climbed for a third day against the Euro as a cut in U.S interest rates increased the allure of higher-yielding currencies. The Pound has [...]

The Pound has enjoyed its biggest two-day advance against the Dollar in over 23-years as UK stocks rallied for a second consecutive day yesterday, while a separate report showed that mortgage approvals actually rose for the first time since June 2007. The UK currency made widespread gains across the board, rising by the most in [...]

The Pound bounced back against the Dollar yesterday, snapping a seven day losing streak to breach the $1.6000 level by the close of trading last night, while the UK currency also registered gains versus the Euro after rising equity and commodity markets bolstered demand for Sterling. A modest revival in the UK stock market saw [...]

The Pound declined to the lowest level in almost five years against the Dollar yesterday, while the UK currency also slumped to a near all-time low versus the Euro following reports that UK house prices dropped by the most in since records began in 2001 and UK stocks continued the downward momentum built up from [...]

Another remarkable week in financial markets saw the Pound plunge almost 10% against the Dollar, while the UK currency also dropped to a fresh record low versus the Euro amid stories of suspended trading on stock, hedge funds in chaos and the prospects of another coordinated round of interest rate cuts. The fear and panic [...]

The dollar continued to benefit from fund demand and the unwinding of highly leveraged positions during trading yesterday, hitting a 2 year high against Euro and a 5 year high against Sterling. Sterling has deteriorated against the USD and the Euro after comments from the Governor of the Bank of England on Wednesday morning, confirmed [...]

Conditions on money markets continue to thaw, with USD short term funding costs falling further in Asia on the back of the latest initiatives from central banks and governments aimed at increasing liquidity. The Federal Reserve have confirmed they will raise the interest rate it pays banks for the excess cash they keep on deposit, [...]

Both the Euro and Sterling came under strong selling pressure versus the dollar over yesterday’s trading session and continued to fall overnight after strong demand for the U.S. currency to settle funding needs has outweighed recent signs of an easing of conditions within credit markets. The situation has been exaccerbated overnight due to comments made [...]

Signs of an easing in stress in credit market and a positive close from Asian stocks on Sunday saw the yen fall back against the Euro and high yielding currencies like the AUD and NZD as investor sentiment picked up a little. Market conditions and sentiment are still fragile. Fears of a global recession are [...]

Good Morning, Volatility in the Foreign Exchange markets has been exceptionally high over recent times with unprecedented events in the financial world significantly altering the outlook for major currency pairs. Although the financial crisis originated in the United States, the dollar has appreciated sharply from the historical lows seen in mid July. However, in an [...]