Currency News: UK daily forex news and forecasts

The Pound to Dollar exchange rate (GBP/USD) dipped sharply from 2-week highs at 1.2565 on Tuesday to trade below 1.2500 as the dollar posted strong gains. Federal Reserve policy guidance, US data and reaction in equity markets will be crucial for the Pound during Wednesday. There will be substantial dollar gains and weakness in equity markets if Fed Chair Powell suggests that interest rates might need to raise interest...

The US Dollar lost some ground on Monday with strong evidence of Bank of Japan intervention to support the yen triggering a tentative wider retreat in the US currency. The Pound to Dollar (GBP/USD) exchange rate traded just above the 1.2500 level with markets braced for very volatile trading during the week. Bank of Japan actions and economic developments will be crucial during the week with Pound positioning ahead of...

ING forecasts the Pound to Euro exchange rate (GBP/EUR) will weaken to 1.1365 at the end of 2024 as the Bank of England cuts interest rates more aggressively over the second half of 2024. Credit Agricole expects Euro-Zone manufacturing weakness will be crucial in hurting the Euro and GBP/EUR will strengthen to 1.19. GBP/EUR hit 3-month lows at 1.1570 early in the week before a strong rebound to 1.1665. At the...

Foreign exchange strategists at HSBC forecast the Pound to Dollar (GBP/USD) exchange rate to slide back below 1.24 in the near-term outlook. According to the bank; “We look for further GBP weakness ahead in the coming weeks. We expect this USD strength to persist, albeit in a more grinding fashion over the next month with attendant downside for GBP-USD.” It added; “We also see scope for independent GBP weakness...

Goldman Sachs has lowered its 6-month Euro to Dollar (EUR/USD) exchange rate forecast to 1.05 from 1.10 previously. Other investment banks expect a firm dollar, but consider that a EUR/USD slide to parity is less likely due to evidence of a recovery in the Euro-Zone economy. Although EUR/USD edged higher during the week it failed to hold above 1.07 and settled around 1.0680. According to Goldman; “Dollar assets...

The Pound to Dollar exchange rate (GBP/USD) was unable to hold 1.2500, but did find support above 1.2450 and traded just below 1.2500. The US Dollar posted renewed gains after the latest US data with markets even less confident over a Fed cut in interest rates amid fresh concerns over inflation trends. The advance US GDP reading for the first quarter of 2024 came in at an annualised rate of 1.6% from 3.4% previously and...

Although the US Dollar has posted 34-year highs against the Japanese Yen, the US currency has not been able to sustain the advance against European currencies. The dollar index overall has retreated to 105.25. The Pound has also continued its recovery in global markets and the Pound to Dollar (GBP/USD) exchange rate has broken back above the 1.2500 level to a 10-day high at 1.2520. Bank of America strategist Kamal...

The British Pound Sterling recovered ground on Tuesday following firm data for the services sector while comments from Bank of England (BoE) chief economist Pill were more hawkish than expected. The Pound had come under strong pressure after markets sensed momentum towards an early cut in interest rates, but comments from Pill triggered some reassessment of the situation. UK equities have also maintained a strong tone...

Solid UK business confidence data, together with weaker-than-expected US data has triggered a sharp Pound rally on Tuesday with the current market narrative of US economic out-performance under fresh scrutiny. The Pound to Dollar (GBP/USD) exchange rate has jumped to near 1.2450 from early lows at 1.2330. Latest US survey data has again not backed the picture of strength indicated by official data, especially with...

European currencies have recovered some ground on Tuesday with increased optimism that strength in services will lead to a rebound in the economy. Equities have also posted net gains with the FTSE 100 index posting a record high at 8075 before a limited correction. Stronger equities should help underpin the Pound to some extent. In this environment, the Pound to Dollar (GBP/USD) exchange rate found support above 5-month...