Currency News: UK daily forex news and forecasts

Currency exchange strategists at Nordea forecast that the Pound to Dollar exchange rate (GBP/USD) will slide to 1.17 by the middle of 2025 which would be the lowest reading since November 2022. Bank of America still expects GBP/USD to advance to 1.38 at the end of 2025. Nordea expects relative growth rates will support the dollar and added; “There is also the potential for an even stronger dollar in the scenario of an...

Foreign exchange strategists at HSBC forecast that the Pound to Euro (GBP/EUR) exchange rate will strengthen steadily to 1.25 at the end of 2025. Nordea, however, expects that GBP/EUR will slide to 1.1365 at the end of next year. GBP/EUR fleetingly hit a 33-month best at 1.2160 during the week before a sharp retreat to around 1.2060 following the Bank of England (BoE) policy meeting. The BoE held interest rates at...

A narrower-than-expected Bank of England (BoE) vote in favour of holding interest rates at 4.75%, triggered a Pound sell-off on Thursday. The Pound was also undermined overnight by wider dollar gains. A hawkish Fed statement had help cut market expectations of a February BoE cut to below 50%, but this was reversed after the BoE statement. The Pound to Dollar exchange rate (GBP/USD) dipped to 1.2600 from earlier highs...

The Pound to Dollar exchange rate (GBP/USD) edged higher on Thursday following the publication of the Bank of England’s (BoE) December interest rate decision and the US’s latest GDP data and initial jobless claims survey. On Thursday, the Pound (GBP) lost ground against most of its major trading partners following the publication of the Bank of England's latest interest rate decision. As expected, the central bank...

The Pound Euro exchange rate (GBP/EUR) edged lower on Thursday following the Bank of England’s (BoE) December interest rate decision. On Thursday, the Pound (GBP) lost ground against most of its major trading partners following the Bank of England's latest interest rate announcement. As expected, the central bank kept interest rates unchanged at 4.75%. However, the decision was not as unanimous as anticipated,...

The Pound Sterling (GBP) drifted lower against the Euro (EUR) nd U.S. Dollar (USD) after the latest UK inflation data. Although very close to expectations, markets were slightly more optimistic that there would be scope for more than two rate cuts next year. There are also expectations that the Federal Reserve will accompany a US rate cut later in the day with cautious guidance over the potential for further cuts early next...

The Pound Euro (GBP/EUR) exchange rate was mostly muted on Wednesday following the release of the UK’s and the Eurozone’s latest inflation readings. On Wednesday, the Pound (GBP) held steady following the release of the UK's latest consumer price index (CPI) figures. The headline inflation rate for November ticked up from 2.3% to 2.6%, and core inflation saw a similar rise, moving from 3.3% to 3.5%. Although these...

The Pound to US Dollar (GBP/USD) exchange rate slipped on Wednesday as investors adopted a cautious stance ahead of the Federal Reserve’s final policy meeting of the year. The US Dollar (USD) edged higher on Wednesday as attention turned to the Federal Reserve’s impending interest rate decision. While the Fed is widely expected to cut rates by 25 basis points at its December meeting, investors are more focused on...

Stronger-than-expected UK wages triggered a jump in the Pound on Tuesday while another weaker German data release undermined the Euro. The Pound to Euro (GBP/EUR) exchange rate jumped back above the 1.2100 level from 1.2065. The latest UK inflation data on Wednesday will cause further Pound volatility. The Pound to Dollar (GBP/USD) exchange rate challenged 1.2700, but was hampered by wider dollar strength in global...

The Pound US Dollar exchange rate was largely subdued on Tuesday following the release of some better-than-expected economic data from both the UK and the US. On Tuesday, the Pound (GBP) gained ground against many of its major trading partners following the release of the UK's latest employment figures. The unemployment rate for the three months ending in October stayed at 4.3%, matching what the market had...