Exchange Rate Forecasts

The Pound remained very weak in early trade yesterday, dropping under $1.4200 against the Dollar and falling to a low of 1.1134 versus the Euro, as escalating fears over the UK banking sector intensified, following the severe annual losses at the Royal Bank of Scotland Group Plc. Nevertheless, confidence in the banking sector was supported [...]

The Pound declined heavily against the majors yesterday, dropping under $1.4200 versus the Dollar, while the UK currency also dropped under 1.1200 against the Euro, following reports that the revised estimate of gross domestic product in the fourth quarter showed that the recession is deepening, fuelling speculation of a further reduction in borrowing costs. According [...]

The Pound weakened yesterday against both the Euro and the Dollar, as the UK currency lost almost 1% in value versus its European counterpart, after UK mortgage approvals fell with banks granting just 23,376 loans for house purchases, indicating that the worsening property slump is pushing the economy deeper into a recession. According to the [...]

The Pound rallied to the highest level against the Dollar in two weeks yesterday, touching a high of $1.4650, before retreating back under $1.4500 at the close of the European session, while the UK currency also advanced against the Yen and the Euro amid speculation that banks are stepping up efforts to shore up their [...]

Following on from last week, the Pound declined for a second week against the Dollar as the FTSE 100 Index of equities dropped more than 6% by Friday, increasing demand for the U.S currency as a haven. While UK home repossessions rose to a 12-year high and the Bank of England Deputy Governor John Gieve [...]

The Pound continued to make gains against the Euro yesterday, while the UK currency also advanced by the most in a week versus the Dollar, after UK stocks rallied for the first time in five days, spurring demand for riskier assets. The correlation between the Pound and aggressive swings in risk sentiment continues to dominate [...]

The Pound declined to the lowest level in two weeks versus the Dollar yesterday but the UK currency remained largely unchanged against the Euro following the release of the minutes from the Bank of England’s last policy setting meeting, which showed that all of the members voted unanimously to cut UK interest rates in February. [...]