Currency News: UK daily forex news and forecasts

The Pound to Dollar (GBP/USD) exchange rate dipped further to 5-month lows just above 1.2400 on Tuesday before a recovery to 1.2470 after the latest UK data. Expectations of near-term Federal Reserve interest rates have continued to fade with the potential for a June cut close to being ruled out while the chances of a July cut are now below 50%. The latest UK inflation data, however, has also triggered fresh doubts over...

St A lull in geopolitics and the Iran/Israel conflict has allowed markets to re-focus on the other main theme – inflation and central bank plans to cut rates. Tuesday’s session brought a raft of central bank speakers and Fed Chair Powell finally admitted a lack of further progress on inflation and a delay to cuts. “The recent data have clearly not given us greater confidence and instead indicate that is likely to take...

There was choppy Pound trading after Tuesday’s UK data, but the Pound to Euro exchange rate (GBP/EUR) secured a slight net advance to just above 1.1720. UK labour-market data was mixed with markets potentially waiting for Wednesday’s inflation data before taking a decisive view on the outlook for Bank of England (BoE) policy. Overall risk conditions will be important after a slide in European equities on...

Pound Volatility to Remain Elevated, GBP/USD Attempts to Recover from 4-Month Lows The Pound to Dollar exchange rate (GBP/USD)came under sustained pressure on Friday with a slide below 1.1500 and 4-month lows just above 1.2425. The dollar continued to see strong buying following the shift in Federal Reserve expectations. GBP/USD has recovered to 1.2480 on Monday but will need to establish a position back above 1.2500...

Investment banks overall have tended to downgrade their Pound to Dollar exchange rate forecasts (GBP/USD). Credit Agricole and RBC Capital Markets were already forecasting 1.25 and 1.24 respectively for the end of 2024. ING has now dropped its forecast of GBP/USD gains to 1.30 or higher this year and is backing 1.25. The decisive development this week was stronger than expected US inflation data. The data triggered an...

RBC Capital Markets forecasts that the Pound to Euro exchange rate (GBP/EUR) will weaken to 1.1365 at the end of 2024, with UK fundamentals still fragile. In contrast, MUFG sees scope for further GBP/EUR gains, at least in the short term, due to a dovish ECB policy. GBP/EUR posted gains to 1.1725 after the ECB policy decision before a retreat to 1.1700. Interest rate expectations have been a key element during the...

Following this week’s developments, US Dollar bears have been forced into hibernation. ING has dropped its forecast that the Euro to Dollar (EUR/USD) exchange rate will trade above 1.10 this year. MUFG added; “We see further declines ahead.” EUR/USD posted sharp loses on the week as markets reassessed the outlook for US interest rates while the ECB action met dovish expectations. The main event of the week was...

After failing to make a significant challenge on 1.1700 on Wednesday, the Pound to Euro (GBP/EUR) exchange rate dipped to just below 1.1670 before a fresh recovery to 1.1690 on Thursday. Solid UK housing data, hawkish MPC rhetoric and expectations that the ECB will signal a June rate cut have supported the Pound. Notably dovish ECB rhetoric may, however, still be needed to propel GBP/EUR above 1.1700. Interest rate...

The US inflation data dominated markets on Wednesday. The dollar edged lower into the latest consumer prices release amid hopes for a moderation in inflation, but there was a sharp and substantial reversal as the data again came in above market expectations. Equity markets also reversed sharply with the FTSE 100 index, for example, sliding to around 7,920 after earlier flirting with the 8,000 level. The Pound to Dollar...

The Pound to Dollar (GBP/USD) exchange rate has edged higher to near 1.2685 on Tuesday as the dollar has lost ground against European currencies. US yields have continued to move in favour of the dollar over the past 24 hours, but the US currency has failed to benefit and Scotiabank sees scope for further GBP/USD gains if there is a sustained break above 1.2665. US developments are liable to dominate in the short term...