Currency News: UK daily forex news and forecasts

ING: Euro to Take a Larger Trade Hit, GBP/EUR To Move Above 1.2050 The Pound to Euro (GBP/EUR) exchange rate has made headway over the past 24 hours, but without breaking above the 1.2000 level and traded around 1.1965 on so-called “Liberation Day.” ING expects trade developments will continue to dominate in the short term with President Trump’s tariff announcement due just after the New York close, although leaks...

The RBA paused its easing cycle and need to see more evidence of inflation stable around 2.5%. This may come sooner than later and Westpac expect a cut in May. Meanwhile, easing EU inflation opens the door to an ECB cut in April. Monday’s session ended Q1 on a positive note as US stock markets managed to recover from a drop to new 6-month lows to close in the green. However, that didn’t change the complexion of...

The GBP to Euro exchange rate has stabilised above 1.1950 and unable to break above the 1.2000 level even with the Euro area facing major challenges over trade, inflation, defence policy and political direction. Bank of America is still backing gains to 1.2200 by the end of June. Goldman Sachs expects a smaller advance to 1.2050. The Euro area also faces increased political uncertainty, especially in France, but EUR/USD...

The Pound was trapped in a narrow range on Tuesday after the Eurozone released its latest inflation reading. At the time of writing, the Pound Euro exchange rate (GBP/EUR) was trading at around €1.1951, virtually unchanged from Tuesday’s opening levels. On Tuesday, the Euro (EUR) had difficulty attracting buyers after the release of the Eurozone's latest consumer price index (CPI) as the data showed that both...

The Pound (GBP) saw limited movement against the US Dollar (USD) on Tuesday as investors remained cautious ahead of President Donald Trump’s expected tariff announcement. At the time of writing, the Pound US Dollar exchange rate (GBP/USD) was trading at around $1.2936, largely unchanged from Tuesday’s opening levels. The US Dollar (USD) struggled for direction on Tuesday as investors weighed the potential impact of...

The Pound to Euro exchange rate firmed on Monday after Germany released its latest inflation reading. At the time of writing, the GBP/EUR was trading at around €1.1972, up roughly 0.2% from Monday’s opening levels. Despite weakening against the Pound (GBP), the Euro (EUR) managed to hold steady and even strengthen against several of its peers on Monday following the release of Germany’s latest CPI data. The...

The Pound to Dollar exchange rate fluctuated within a narrow range at the start of the week as investors awaited further developments on US trade policy. At the time of writing, GBP/USD was trading at $1.2941, showing little change from its opening level. The Pound (GBP) saw muted movement on Monday, with a quiet economic calendar offering little direction for the currency. Additionally, the broader market sentiment...

Currency analysts at Bank of America expect a surge in the Pound to Dollar exchange rate (GBP/USD) to 1.44 at the end of 2025 with further strong gains to 1.56 at the end of next year. Wells Fargo has adjusted its forecasts slightly, but still expects that GBP/USD will dip to 1.25 at the end of 2025. It also expects further losses to 1.21 by the third quarter of 2026. GBP/USD found support around 1.2870 during the week,...

Foreign exchange strategists at Goldman Sachs have a 12-month GBP/EUR forecast of 1.2200 as it considers that Euro-Zone optimism is overdone. In contrast, HSBC expects a retreat to 1.1765 amid a lack of confidence in the UK outlook. GBP/EUR briefly hit 3-week highs above 1.2000 during the week before a retreat to 1.1950. Chancellor Reeves tightened welfare spending in the Spring Update and cut long-term spending...

The pound has made moderate gains against the euro and USD this week. The Spring Budget managed to avoid any unwanted market reactions and long-term growth was actually revised slightly higher. Headline inflation missed estimates but services remained high and the BoE will not be swayed by a dip in the readings as increases are expected later this year. Sterling traders have been kept busy this week with several key UK...