Exchange Rate Forecasts

GBP/USD in short-term relief, but downside risks remain.

GBP/EUR has begun to pare early November losses and could attempt to regain a toehold above 1.17 over the coming days.

Pound Sterling has reached its lowest levels in eleven months this week, but the prospect of a recovery is building according to a major Wall Street bank.

"There's growing talk of the EU suspending its trade deal with the UK. But fresh Brexit uncertainty may not have as big a market impact as perhaps presumed" - ING.

Commonwealth Bank of Australia forecast the Australian Dollar to come under pressure over the remainder of 2021, but they forecast a recovery against the Dollar, Pound and Euro shaping up for 2022.

"We doubt that GBP will profit much from early rate hikes" - Swedbank.

GBP/CAD looks to stabilise above 2021’s low near 1.6700, aided by cleaner pricing of BoE & full expectations for Bank of Canada policy. 

EUR/USD supported at 1.1495 & may attempt rebound as USD tires in struggle with major resistance on charts.

In spite of recent recovery GBP/AUD remains in a downtrend and a break below 1.82 lows is required to confirm continuation.

A GBP/USD rebound could be likely this week, but much will depend on the market’s appetite for the greenback and response to U.S. inflation figures.

GBP/NZD is in a short-term downtrend but has now reached a major long-term trendline and there may be a near-term bounce off this level.

GBP/EUR starts the new week hobbled by the market response to last week’s Bank of England (BoE) monetary policy decision but it could be likely to stabilise above the nearby 1.1650 level over the coming days, albeit with only limited upside potential.

EUR/USD could succumb to fresh 2021 lows in the wake of the Federal Reserve policy update, according to analysis released ahead of the central bank's November policy update.

Analysts at HSBC have said there are only one in three outcomes to Thursday's Bank of England policy meeting that might support Sterling upside.

The Euro could be on course to retest the 2021 low against the Dollar according to a noted technical analyst, although where it ends the week could depend on the outcome of the Federal Reserve's November 03 policy update.

GBP/NZD is in a short-term downtrend that is expected to extend to at least 1.90.

GBP/AUD rate is trading at around 1.8200 at the time of writing after falling 1.15% in the week before. Studies of the charts suggest the pair will continue falling in line with the dominant downtrend.

Pound Sterling has retraced from the peaks of its October rally against the Dollar and further losses are possible over coming days, particularly if the Bank of England disappoints markets by shying away from raising interest rates.

Pound Sterling looks set to consolidate below the previous week's highs against the Euro as traders take money off the table ahead of this week's pivotal Bank of England meeting.

The Pound-to-New Zealand Dollar rate is experiencing its third week of declines as the pair pushes down into the 1.91s - but what is driving the Kiwi’s strength against Sterling, and is it likely to continue?