Exchange Rate Predictions: Pound vs the Euro and US Dollar Today, More Gains are Possible

Above: Price action in the GBP-EUR advocates for further GBP gains. Please note all quotes in this article are reflective of the inter-bank market. Your bank or payment institution is free to levy a rate at their discretion. However, FCA-registered independent providers guarantee to undercut your bank's offer, thus delivering up to 5% more FX. Please learn more here.

The British pound (GBP) has entered calmer waters mid-week however the potential for further gains against the EUR and USD remain a distinct possibility.

However, the declines against the Australian and New Zealand dollars are indicative that strength for GBP is unlikely to be widespread and losses on the crosses could keep all-out pound strength contained.

Sterling dollar exchange rate predictions

Karen Jones at Commerzbank is bullish on GBP-USD:

"GBP/USD has inched higher and this leaves pressure still on the topside and the market capable of retesting the 1.6822 recent high. The Elliott wave count on the 240 minute chart is suggesting scope to 1.6900.

"Current trade: Square Recommended Trade: Attempt minor longs 1.6735, add 1.6720, stop 1.6680. Partially cover 1.6820 and exit the remainder 1.6895."

Lloyds Bank Research say:

"GBP/USD has traded firmer this week helped by broad USD weakness and some stronger domestic data. With little else on the UK calendar today, we expect USD sentiment to drive GBP/USD.  The year's high of 1.6823 is now in sight for GBP/USD."

Euro pound exchange rate forecast

Piet Lammens at KBC Markets says:

"EUR/GBP is nearing the 0.8200/0.8157 support area. The sterling momentum is constructive, but a break will probably be difficult as long as the
euro remains well bid across the board."

UBS tell us:

"With the trending and momentum indicators pointing lower, there’s more downside potential to support at 0.8204 and then 0.8158. Resistance is at
0.8285."

Markets today: USD weakness remains the key theme

The US dollar exchange rate complex continues to under-perform.

During yesterday's Asian and European trading session the repositioning out of the dollar slowed temporary.

"However, the dollar came again under pressure after the publication of the Minutes of the March Fed meeting. US bond yields declined as markets saw no indication of an early rate hike in the US (no mentioning of the 6 months comments of Yellen)," says Piet Lammens at KBC Markets.

EUR/USD cleared the 1.3820 resistance. The losses of USD/JPY were more moderate, probably as US equities rebound.