Latest Currency News Continued - page 8

Currency exchange analysts at MUFG and ING both expect that the Pound to Dollar exchange rate (GBP/USD) will trade just above 1.30 at the end of 2024 as the dollar loses ground. HSBC, however, expects GBP/USD to lose ground during the year. GBP/USD was unchanged on the week close to 1.2650. According to ING; “Continued investor interest in the carry trade should keep Sterling reasonably well bid. And given our...

Foreign currency strategists at MUFG expect that the Pound to Euro exchange rate (GBP/EUR) volatility is too low and that the pair will weaken to 1.1495 at the end of 2024. Bank of America, however, expects net GBP/EUR gains to 1.1905 at the end of the year on improved UK fundamentals. There have been no major UK developments during the week with markets looking ahead to the budget next week. The housing data remained...

Foreign exchange analysts at Bank of America are sticking to their forecast that the Euro to Dollar exchange rate (EUR/USD) will strengthen to 1.15 at the end of 2024. In contrast, Danske Bank is still backing dollar strength with a 12-month EUR/USD forecast of 1.04. EUR/USD was marginally stronger on the week, trading around 1.0830 in very narrow ranges. Concerns over inflation have continued to underpin the dollar,...

Thursday’s UK and US economic data releases failed to have a major impact, although slightly softer than expected US jobless claims data did trigger limited dollar selling as US yields declined. The Pound to Dollar (GBP/USD) exchange rate edged higher to 1.2670. GBP/USD will need substantial month-end dollar selling to make a concerted attack on the crucial 1.2700 level. UK mortgage approvals increased to 55,200 for...

The latest UK data indicates that hopes for lower interest rates have underpinned a rebound in the housing sector and boosted business confidence. The Euro has held firm, however, and the Pound to Euro (GBP/EUR) exchange rate has edged lower to 1.1675. Solid data and expectations of tax cuts next week should still underpin GBP/EUR in the short term. UK mortgage approvals increased to 55,200 for January from an...

The Pound to Dollar exchange rate (GBP/USD) came under pressure in early Europe on Wednesday and hit 5-day lows close to 1.2620 as equities moved lower. Scotiabank commented; “A mild bid for the USD generally yesterday developed a little more in overnight trade, largely reflecting weaker risk appetite as stocks in Asia and Europe (mostly) weakened.” According to Kyle Chapman, FX markets analyst at Ballinger & Co...

The Euro to Dollar exchange rate (EUR/USD) was unable to hold above 1.0850 on Tuesday and edged lower later in the day despite weaker-than-expected US data. EUR/USD retreated further to test 1.0800 on Wednesday with markets expecting near-term inflation data to support the US currency. The dollar also gained an element of defensive support as equity markets lost ground. Month-end positioning, risk conditions and...

The New Zealand dollar slumped following the Reserve Bank of New Zealand (RBNZ) interest rate decision with rates held at 5.50%. This was the consensus forecast, although a minority of banks had backed a rate hike and markets had priced in around a 23% chance of a hike. The New Zealand dollar to US dollar (NZD/USD) exchange rate plunged to the 0.6100 level from near 0.6180 ahead of the decision. The Pound to New Zealand...

The Pound to Dollar exchange rate (GBP/USD) was again unable to break the 1.2700 level on Tuesday and retreated to near 1.2660 after the New York open before settling around 1.2675. GBP/USD needs to break 1.2700 to make further headway with markets looking at month-end trading to break the deadlock. The dollar secured a net gain despite a significant decline in US consumer confidence. Position adjustment will be...

The Pound to Euro exchange rate (GBP/EUR) has continued to consolidate below the 1.1700 level and traded close to 1.1685 in early Europe on Tuesday. The Pound has been underpinned by low volatility in global markets, but overall ranges have remained narrow. The Euro has also been protected by hopes for a revival in the Euro-Zone economy and doubts whether the ECB will sanction a near-term rate cut. The British Retail...