Currency News: UK daily forex news and forecasts

Goldman Sachs expects further short-term Pound to Euro (GBP/EUR) exchange rate gains to 1.2120 and maintains a 12-month forecast of 1.2200. Although RBC Capital Markets (RBC) expects near-term support, it expects a steady decline to 1.1240 on a 12-month view. GBP/EUR posted sharp gains to 30-month highs at 1.2050 during the week before a retreat to 1.2000. Interest rate decisions and expectations remained a key...

The ECB cut rates for a third time. It seems there is a shift of focus from battling inflation to supporting the economy and this would lead to more cuts. EURGBP made fresh 2024 lows and is approaching the 2022 low of 0.82. Thursday ECB unfolded as expected as the central bank cut rates for a third time. The move was already priced in to bond markets by up to 95%, but the euro still dropped as it looks like there...

ING expects the Pound to Dollar (GBP/USD) exchange rate will weaken to 1.28 in the short term. During the week, GBP/USD dipped to 8-week lows around 1.2975 before a tentative recovery to 1.3030. The November US election is looming large on investment bank commentary and forecasts. ING sees further potential dollar demand; “With the election less than three weeks away, it looks like investors will be reluctant to...

The Pound to Euro (GBP/EUR) exchange rate found support below 1.1950 on Wednesday and settled around 1.1965. Unless there is very dovish ECB rhetoric, GBP/EUR could retreat later in the session. Interest rate decisions and expectations surrounding the Bank of England (BoE) and ECB will remain key elements for the Pound with markets also monitoring geo-political developments. The immediate focus will be on the ECB with...

The Pound Euro (GBP/EUR) exchange rate found some success on Thursday as the European Central Bank (ECB) delivered its third interest rate cut of 2024. At the time of writing, GBP/EUR traded at €1.1987, up 0.3% on the day. The Pound (GBP) started Thursday on a muted note, still feeling the impact of Wednesday's disappointing inflation data. September's consumer price index revealed that UK inflation cooled more than...

The Pound US Dollar exchange rate traded largely sideways on Thursday following the publication of the US’s retail sales data for September. At the time of writing, GBP/USD was trading at approximately $1.3005, virtually unchanged from the start of Thursday’s session. The US Dollar (USD) treaded water against most of its counterparts on Thursday following the release of the latest US retail sales figures. Thursday...

The Pound posted sharp losses after the notably lower-than-expected UK inflation data. Markets priced in very close to a 100% chance of an interest rate cut at the November Bank of England (BoE) meeting. The chances of two rate cuts by the end of 2024 is now seen at near 70% and speculation over a larger 50 basis-point move in November has also increased which undermined the UK currency. According to Sanjay Raja,...

The Pound US Dollar exchange rate lost ground on Wednesday following the publication of the UK’s latest consumer price index (CPI). At the time of writing, GBP/USD was trading at approximately $1.3020, down roughly 0.4% from the start of Wednesday’s session. The Pound (GBP) plunged against the majority of its counterparts on Wednesday after the UK's latest inflation figures were released. The Office for National...

The Pound Euro (GBP/EUR) exchange rate took a tumble on Wednesday morning after a weaker-than-expected UK consumer price index saw markets increase bets on more Bank of England (BoE) interest rate cuts. At the time of writing, GBP/EUR traded at €1.1946, down 0.5% from the morning’s opening levels. The Pound (GBP) tumbled on Wednesday after a weaker-than-expected UK CPI reading intensified speculation about further...

UK wages data reinforced very strong market expectations that the Bank of England (BoE) would cut interest rates at the November policy meeting. The Pound to Dollar (GBP/USD) exchange rate dipped to 1.3035 before a recovery to 1.3070 as the dollar lost ground in global markets, although the overall range was little changed. The 1.3000 area remains crucial for the pair. According to UoB; “a breach of 1.3125 would...