Exchange Rate Forecasts

The Euro-to-Dollar rate entered the new week near to 1.18 after narrowly escaping new 2021 lows but may struggle to get up further momentum over the coming days and will also be among the most vulnerable currencies to any recovery by the greenback.

The Pound-to-Dollar rate was finding a firmer footing above the recently-tested 1.38 support level on entry into a busy week that could see Sterling’s resilience tested again by the greenback as the Federal Reserve edges closer toward a tapering of its quantitative easing programme.

The British Pound is on course to move higher against the Euro over coming weeks, but the rise will likely be a slow and bumpy one shows new research from Rabobank.

The Pound-to-Euro exchange rate came off the boil ahead of the weekend and could now struggle for fresh momentum over the coming days as Sterling navigates a minefield of UK economic data littering the path ahead, although it remains well supported above the nearby 1.17 level.

The British Pound has reached its highest levels against the Euro since February 2020 as the UK currency makes progress on reversing its Covid-inspired decline, but sustained gains against the U.S. Dollar remain elusive.

We are deep into the third quarter of 2021, yet the Reserve Bank of New Zealand is being tipped to deliver up to two interest rate hikes before the year is done.

Foreign exchange analysts at Goldman Sachs say they are upgrading their forecasts for the British Pound following the August policy update from the Bank of England, although they will retain a cautious stance on the UK currency.

The Pound-to-Canadian Dollar rate entered the new week above 1.74 and with support at nearby levels but Sterling could struggle for momentum before Thursday’s GDP report reveals the extent to which the UK’s recovery met bullish market expectations last quarter.

The Pound-to-Dollar exchange rate has suffered a series of setbacks that have curbed its upward momentum and could see it slipping lower over the coming days, potentially as far as its 200-day average around 1.3757, as a buoyant Dollar keeps downside risks dominant for Sterling.

The Pound-to-Euro rate enters the new week close to multi-year highs above 1.18 but could be likely to consolidate recent gains beneath there over the coming days as the market awaits Thursday’s GDP data, which will reveal whether the UK’s economic recovery is meeting elevated expectations.

Analysts at MUFG have raised their forecasts for the British Pound in light of a sustained fall in UK Covid-19 cases which they say will ultimately allow the Bank of England to raise interest rates in 2022.

Fears over global growth slowing and the impact of the Delta variant look overblown, meaning the Dollar's recent safe-haven bid is unlikely to last according to new currency market research.

The Pound-to-Canadian Dollar exchange rate has struggled to sustain momentum above 1.7350 but remains on its front foot and could be set to reclaim the top spot among G10 major currencies for 2021 this week with another attempt at recovering above the year’s breakeven level of 1.7380.

The Euro-to-Dollar exchange rate entered the August month close to four-week highs and with scope to retest if-not reclaim the 1.19 handle over the coming days now the Eurozone economy has shifted into second gear and the coronavirus has entered retreat across large parts of the continent.

The Pound-to-Dollar rate must navigate an oncoming Bank of England (BoE) policy decision and an important U.S. jobs report, the headlights of which could potentially have a dampening impact on the British currency though recently improving demand Sterling may mean a renewed attempt on the 1.40 level is just a matter of time.

The Pound-to-Euro exchange rate has made an enthusiastic bid for the ground above 1.1730, a level which it could get the better of again this week if Sterling continues catching the eye of institutional punters, though sustainability of the move would depend on the outcome of Thursday’s Bank of England (BoE) policy decision.

The near-term outlook has turned less favourable for the Australian Dollar say economists at Wells Fargo in their latest global economic and exchange rate forecast update, although they remain of the view the currency will ultimately trend higher in 2022.

Economists at one of the largest lenders and financial services provider in North America have updated their forecasts for the Canadian Dollar, finding that the currency will gain over the Dollar but will likely be locked around the 1.70-1.72 range against the Pound for the foreseeable future.

The Rand has weakened in response to a turn higher in the U.S. Dollar that has pushed it beneath key levels of support on the charts and cultivated risk of further losses in the process, some of which could potentially lift GBP/ZAR back to 20.82 or above over coming days.

The Euro has weathered recent market turbulence better than many other currencies but may see its resilience tested again this week by the Federal Reserve (Fed), which dominates the currency market agenda ahead of Friday’s eagerly-awaited Eurozone GDP data for last quarter.