Pound Sterling Forecast: Sterling’s Rise Against the US Dollar and Euro Continues

Pound Sterling Forecast: Sterling’s Rise Against the US Dollar and Euro Continues

The pound has arguably its most important relationship against the US dollar, since the US dollar is the most heavily traded currency in the world. Therefore, any big movements on the US dollar are a key factor in driving sterling movements. The weakness from the US dollar stems from the latest decision by the US Federal Reserve bank in the United States that they wish to look at adjusting their inflation targets. By allowing inflation rise higher than the usual 2% band within which the...
Pound to US Dollar Pulls Back as Market Bulls Pause

Pound to US Dollar Pulls Back as Market Bulls Pause

After rallying from 1.25 to a high of 1.3182 in a little over two weeks, the pound to US dollar finally ran into some resistance and drifted lower to end the week just above 1.30. Bank of England Governor Andrew Bailey confirmed on “Super Thursday” that the bank would continue to support the UK economy although Chancellor Rishi Sunak suggested that the government’s furlough scheme could not go on forever. The bank’s comments were generally positive with an upward growth revision for the year,...
Pound to US Dollar Exchange Rate surges more than 5 percent in July

Pound to US Dollar Exchange Rate Surges More Than 5 Percent in July

The pound to US dollar exchange rate recorded its largest monthly gain during July as the currency pair surged nearly 6 percent, smashing the psychological barrier of 1.30 and reaching 1.3165 before falling back and consolidating just below 1.3100. That’s the largest monthly gain for 11 years. The move was caused by a huge US dollar sell-off as a series of events sparked concern over the US’s position. US annualised GDP crashed 32.9 percent in the second quarter, recording its worst result in history although...
Pound Sterling Forecast – USD Movements Could be Crucial

Pound Sterling Forecast – USD Movements Could be Crucial

The last week has seen increased discussions over the role of the US dollar in the currency markets, with many movements for the pound sterling forecast attributable to movement on the US dollar. As we approach the US election, and the economic and health effects of COVID-19 show no sign of slowing down in the US, the pressure on the US dollar has increased and seen it sold off. Where typically the US dollar is regarded as a safe haven currency which will appreciate in...
GBPEUR - Brexit Negotiations Commence 8th Round Next Week

Pound Sterling Forecast – Has the Market Overestimated GBP?

Where some had been arguing that economic data was taking less importance, I think one could argue this week has seen a bit of a turning point with the economic data once again driving the pound sterling forecast to a greater extent. This morning, we saw the latest Unemployment data with a headline figure of 650,000 people more out of work in June compared to March. Despite the government furlough program earlier this year there remains a huge challenge for the UK to retain employment...
Pound to Euro Exchange Rate Held back by the Key 1.1250 Pivot

Pound to Euro Forecast – Crucial Week for Brexit Negotiations

The pound to euro exchange rate faces added pressure this week as Brexit discussions continue in the third week of 'intensive' negotiations between the UK and EU, now being carried out face to face. Boris Johnson last week showed some optimism that he hoped a deal could be reached in July. At the same time however German Chancellor Angela Merkel has started preparing for a no deal Brexit after the British Prime Minister said he was ready to walk away from the negotiations. Michael...
Pound Sterling Forecast: Pound to Euro Exchange Rate Rallies Higher

Pound Sterling Forecast – Will the Pound Continue to Rise?

The end of last week saw the pound sterling forecast rising with fresh three-week highs seen for the pound to euro exchange rate, plus for the pound to US dollar exchange rate. GBPEUR interbank rates rose to a fresh high of 1.1185, whilst GBPUSD interbank rates reached 1.2658. The reasons for this spike were mixed with a continuation of the recent optimism for the pound helping to fuel pound strength. Two of the key reasons that can be considered would be the positivity from the...
Pound Sterling Forecast: Sterling’s Rise Against the US Dollar and Euro Continues

Pound to Euro Exchange Rate Inches Higher

The pound has recovered further this week with positive movement against both the euro and the US dollar, and taking rates to a twenty-day high against these currencies. GBP to EUR currently sits at 1.1170 and GBPUSD is at 1.2580. The UK Chancellor Rishi Sunak announced substantial measures on Wednesday to promote economic activity including a major change to the stamp duty threshold at which tax is paid on property sales as well as initiatives to try and get customers back into restaurants and on...
Pound to Euro Exchange Rate: Brexit, UK Data and EURUSD

Pound Sterling Rates Rally on Month End Flows

Pound to euro and pound to dollar rallied almost 0.5 percent during yesterday’s trading as month-end flows caused a rebalancing in the market. Fund managers typically look to rebalance their books at month-end, and this often leads to excessive movements in currency pairs. Pound to euro surged above 1.10 and pound to dollar above 1.23 on the interbank exchange, and both pairs have consolidated above those levels this morning. Sterling has been sold quite heavily over the past couple of weeks and yesterday saw some...
GBPEUR: Sterling Exchange Rates Sell-off Due to Brexit Concerns

Pound Sterling Forecast: will COVID-19 Keep GBP Weak?

The pound has finished another week testing lower points and on the back foot, as a continued range of uncertainties weigh on sentiment toward the pound sterling forecast. First and foremost, the lack of clarity surrounding Brexit and an underlying viewpoint that no-deal is a real possibility. And further, a continued deterioration in the global economic outlook as new cases and deaths at the hands of the Coronavirus sees spikes in the numbers, causing global confidence to falter. Sterling has been repeatedly labelled a ‘risky’...