Currency News: UK daily forex news and forecasts

The US Dollar traded lower at the Monday open following the news that President-elect Trump had nominated Scott Bessent to be Treasury Secretary. The nomination of Bessent increased hopes of less disruptive US trade policies which triggered a dollar correction and recovery in European currencies, but underlying US currency sentiment remained strong. The slide in yields has undermined the Euro while global developments...

The Pound Euro exchange rate (GBP/EUR) edged lower on Monday as Donald Trump’s Treasury Secretary nomination helped calm concerns about US tariffs negatively impacting the Eurozone economy. At the time of writing, GBP/EUR traded at €1.1986, down more than 0.3% on the day. The Euro (EUR) strengthened on Monday, supported by its negative correlation with a weakening US Dollar (USD). The decline in USD exchange rates...

The Pound US Dollar exchange rate edged higher at the start of the week, bolstered by Monday’s risk-on market mood. At the time of writing, GBP/USD was trading at approximately $1.2568, up roughly 0.3% from the start of Monday’s session. The Pound (GBP) kicked off the week with a robust performance against most other currencies, despite the absence of domestic economic data influencing its trajectory. This...

HSBC expects that the Pound to Dollar (GBP/USD) exchange will edge lower to 1.24 by June 2024. The bank is forecasting significant net dollar gains, but with GBP/USD losses contained by a Pound advance against the Euro. UBS has scaled back its GBP/USD forecasts following the US election, but still expects gains to 1.33 by the middle of 2025. The dollar posted further gains during the week with the trade-weighted index...

Foreign exchange analysts at Commerzbank expect the Pound to Euro exchange rate (GBP/EUR) to maintain strength throughout 2025 with gains to 1.2350 at year-end. This would be the strongest level since 2016. There is very little in the way of dissent on a short-term view while, after initial gains to at least 1.22, MUFG expects that there will be a net GBP/EUR retreat to 1.2050 in the third quarter of 2023. The Euro-Zone...

PMIs in the EU dropped further, with Services joining Manufacturing in contraction territory. The euro dropped sharply. EURUSD was down –1.35% and tested 1.035. One hope for the euro is that PMIs are not yet reflected in hard data such as GDP. The US dollar has had a remarkable run since late September when it was hovering near the lows of the year and the lows of 2023. An 8% rally in under two months has taken...

The Pound to Dollar (GBP/USD) exchange rate has been unable to make headway and drifted to 1.2625 on Thursday, close to 6-month lows just below 1.2600. Overall risk conditions are less benign amid concerns over an escalation in the Ukraine conflict which is curbing support for European currencies. ING commented; “That the Biden administration is providing more support before year-end warns of a more aggressive Russian...

The stronger than expected UK inflation data strengthened the Pound on Wednesday with the Pound to Euro (GBP/EUR) exchange rate edging back above the 1.2000 level from 1.1980 as markets priced out the already small possibility of a December Bank of England rate cut. Markets still expect significant rate cuts next year. According to ING on EUR/GBP; “For the short term, we stick with our call that the pair will move...

The Pound US Dollar exchange rate treaded water on Thursday despite the UK’s latest borrowing figures outpacing estimates. At the time of writing, GBP/USD was trading at approximately $1.2641, virtually unchanged from the start of Thursday’s session. The Pound (GBP) stumbled against most currencies on Thursday after the UK's latest government borrowing figures were released. According to the Office for National...

The Pound Euro (GBP/EUR) exchange rate wavered sideways on Thursday as rising UK borrowing costs and flaring tensions in the Russia-Ukraine war weighed on both currencies. The Pound (GBP) declined on Thursday as higher-than-expected UK government borrowing figures raised concerns about the state of the public finances. Data from the Office for National Statistics (ONS) revealed that public sector borrowing surged to...