Pound Forecasts

Morgan Stanley says it has "doubled down" on its bearishness towards the U.S. Dollar in 2023, prompting it to lift its Pound to Dollar exchange rate forecast.

The Pound to New Zealand Dollar exchange rate has held within a narrow range thus far in the New Year and could be likely to test the boundaries on either side of this corridor over the coming days as Sterling and the Kiwi navigate a series domestic and international event risks.

Peak pessimism towards the British Pound may be close to passing says a year-ahead research publication from MUFG, the global investment bank and lender.

The Pound to New Zealand Dollar exchange rate entered the new week on the front foot and may have scope to edge higher in the days ahead although a cluster of moving averages located around the 1.93 level could eventually frustrate Sterling's recovery.

The Pound to Australian Dollar exchange rate entered the new week multi-month lows but would risk falling to some of its softest levels since late September if the currently outperforming antipodean currency remains ascendant in the days ahead. 

The Pound to Dollar exchange rate has sharply reversed its New Year losses and could rise further this week if global markets build on last Friday's gains but public remarks from Federal Reserve (Fed) officials and the latest U.S. inflation figures are potential risks to the recovery.

The Pound to Euro exchange rate has appeared to be drawing a line under its December decline and could have scope to reverse some of its recent losses this week if global markets remain on the front foot and Sterling is able to navigate risks lurking in the domestic appointment book without upset. 

HSBC predicts GBP & EUR to turn tables on GBP in 2023.

The British Pound will lose value to the Euro and Dollar over the duration of 2023 says J. Safra Sarasin, a private Swiss bank, in a year-ahead research briefing.

"We think a bullish scenario for the UK (and its currency) could come as a surprise to many in 2023" - Morgan Stanley.

Foreign exchange analysts are considering the prospect of a near-term retreat in GBP/USD back below the psychologically significant 1.20 level.

Pound Sterling will lose "notable" value against the Euro says a new analysis from global investment bank MUFG, although other analysts say the UK currency can advance in value during 2023.

The Pound to Canadian Dollar exchange rate entered the new week near to nine-month highs but could be likely to consolidate its recent gains around 1.65 in the days ahead unless the Loonie finds reason for further underperformance in Canada's latest inflation and economic growth numbers.

The Pound to Dollar exchange rate was toppled at six-month highs last week as deteriorating economic data and hawkish central banks drove a rout in risky assets but Sterling could benefit this week if the forthcoming holiday period leads the speculative market to lighten up on its own risk for a while. 

The Pound to Euro exchange rate fell heavily last week and still faces numerous medium-term headwinds but could be likely to find its feet around 1.1450 over the coming days if risk reduction ahead of the forthcoming holiday period leads the speculative market to cut back bets against Sterling. 

The Pound to Euro exchange rate was trading at substantially reduced levels ahead of the weekend but could have further to fall if the TD Securities strategy team is on the money when looking for Sterling to slip lower to around 1.13 in the fortnight or so to come.

AUD forecast to strengthen in 2023 by NAB.

The Pound to Dollar exchange rate has remained buoyant near nine month highs in recent trade but it could be volatile in the days ahead when a pending deluge of important UK and U.S. economic data points will set the stage for the latest interest rate decisions from the Federal Reserve (Fed) and Bank of England (BoE).

Citi says the British Pound will retreat towards 2022's lows over the coming months.

Technicals look for more GBP/USD upside.