Currency News: UK daily forex news and forecasts

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...

Pound Sterling (GBP) climbed against the US Dollar (USD) on Thursday following the publication of the US’s latest GDP data. At the time of writing, GBP/USD was trading at approximately $1.2943, up roughly 0.5% from the start of Thursday’s session. On Thursday, the US Dollar (USD) weakened against most of its major counterparts following the release of the latest US GDP figures. The index, which measured economic...

The Pound was rangebound on Thursday following US President Donald Trump’s latest tariff announcement. At the time of writing, the Pound Euro (GBP/EUR) exchange rate was trading at around €1.1992, virtually unchanged from Wednesday’s opening levels. On Thursday, the Euro (EUR) wavered against most of its major counterparts. While it strengthened against some currencies, it weakened against others, even though...

Underlying reservations over the UK growth outlook curbed Pound confidence in global markets. Trade fears and wider uncertainty surrounding the international outlook also remained a key element ahead of the April 2nd US Administration announcement on tariffs. The overall budget impact was limited with some relief in the bond market as the 2025/26 gilt issuance forecast was lowered slightly. The UK 10-year bond yield...

The Pound Sterling (currency:GBP) slumped against the Euro and US Dollar on Wednesday as the UK released its latest consumer price index (CPI) and Spring Statement. At the time of writing, the Pound to Euro exchange rate (GBP/EUR) was trading at around €1.1961, down roughly 0.3% from Wednesday’s opening levels. The Pound to Dollar exchange rate (GBP/USD) traded at 1.28987 (-0.36%). On Wednesday, the Pound (GBP)...

The Pound-to-Dollar advanced on Tuesday following reports suggesting US President Donald Trump may take a more gradual approach to introducing new tariffs. At the time of writing, the Pound US Dollar exchange rate (GBP/USD) was trading at around $1.2948, up approximately 0.2% from Tuesday’s opening levels. The US Dollar (USD) faced headwinds on Tuesday as investors reacted to a report from the Financial Times...

EUR/USD is slightly higher and is consolidating the large gains triggered earlier in March by the German fiscal package. Sentiment surveys in Germany and the US were released on Tuesday. While the Ifo Index in Germany climbed to the highest reading in nearly a year, US consumer sentiment readings fell to the lowest levels since 2021. Tuesday’s session has been slower than Monday’s when stocks made a strong recovery...

Trade Fears Sap Euro Support, GBP/EUR Close to 20-Day Highs The Pound to Euro (GBP/EUR) exchange rate is trading around 1.1970 and close to 20-day highs at 1.1980 recorded on Monday. The Euro overall has lost ground with euphoria surrounding the German fiscal stimulus fading to some extent while trade concerns are looming large ahead of April 2nd when Trump has threatened to impose substantial tariffs on the Euro...