Exchange Rate Forecasts

Pound Sterling is forecast to trade with a heavy tone into a potential interest rate cut on Thursday.

Foreign exchange analysts at Investec, the commercial and investment bank, have raised their forecast targets for the Pound to Dollar exchange rate.

The Pound to Dollar exchange rate could sail through the 1.30's in the coming months, bolstered by a more promising economic outlook and the prospects of political stability.

The Pound to Canadian Dollar exchange rate is close to three-and-a-half-year highs as the Bank of Canada looks to cut interest rates again this week.

The Pound to New Zealand Dollar is on course to break the 2023 high at 2.1587, but warning lights are flashing that this is a very overbought exchange rate.

Should global investor sentiment deteriorate further in the coming days, there is a good chance that GBP/AUD will make a run for 2024 highs at 1.9570.

The Euro can recover in the coming days, according to a new analysis at the start of a week that will be dominated by U.S. politics, Eurozone PMIs and the U.S. PCE inflation index.

Pound Sterling hit highs above 1.30 against the Dollar last week, but a decline in stock markets brought the rally to a halt. This week, we will watch the market's reaction to U.S. political developments for guidance.

Pound Sterling has turned lower again following a strong run and we forecast the pullback to extend in the coming days if equity markets continue to struggle. Eurozone and UK PMIs are the week's focus.

One of Europe's biggest investment banks says France's election outcome will weigh on the single currency as it forecasts the Euro to Dollar exchange rate to trend lower over the coming months.

GBP/CAD has rallied to a new three-and-a-half-year high at 1.7720, but the odds of a pullback in the coming days are high with inflation figures due either side of the Atlantic.

The Pound to New Zealand Dollar exchange rate can deliver more gains in the coming week, but beware of overbought conditions and any pullback if UK wage and inflation figures undershoot midweek.

The Euro reached its highest level in five weeks against the Dollar last Friday, but there is a possibility of a consolidative retreat in the coming five days.

Pound Sterling has risen to its highest level in a year against the Dollar after last week's 1.35% gain. But, the rally leaves it technically overbought in the near term and exposed to weakness if this week's inflation and wage figures undershoot expectations.

The Pound to Euro exchange rate hit a new two-year high at 1.1920 on Monday, but inflation, wage and retail sales data will determine whether this hot streak extends.

A major investment bank has said it thinks the Australian Dollar can continue its streak of outperformance.

Work has already begun to improve the UK's Brexit deal with the EU as the new Labour government pursues closer ties with the EU. Analysts at Barclays say this can help shrink the Pound's 'Brexit premium'.

The Pound to New Zealand Dollar exchange rate can remain supported into the midweek policy decision at the Reserve Bank of New Zealand.

The Pound to Australian Dollar exchange rate can recover to 1.91 this week.

Pound Sterling has now reached elevated levels against the U.S. Dollar and will need Thursday's U.S. inflation release to be soft if it is to break fresh ground.