Exchange Rate Forecasts

The Pound to Dollar exchange rate can extend higher in the short-term according to a new analysis released following the release of UK GDP data that showed a rebound in activity during August.

One of Europe's largest banks has taken a knife to its forecast for the Euro to Dollar exchange rate (EURUSD), however, the exchange rate is still expected to appreciate as 2024 gets underway.

The British Pound looks set to reboot its rally against the Euro and Dollar over the coming months according to analysis from Bank of America Merrill Lynch.

GBPCAD's short-term rebound has been halted by a flareup in geopolitical tensions, although it is too soon to say the pair is about to return to lows around 1.6350.

GBPNZD can continue to stay supported above the 2.0275 level over the coming days as a 'relief' rally looks to extend further, however, data out of China could boost the Kiwi if it confirms a pickup in activity is underway.

GBPAUD drawdown fades, leaving scope for the rebound to extend.

EURUSD short-term technicals positive, but be wary of the USD trend rebooting.

GBPUSD short-term outlook remains positive, but strength to be limited given broader USD dynamics.

GBPEUR is supported as long as above €1.1490, €1.16 a tentative target.

Analysis from a leading Canadian bank says the British Pound and Euro can extend a recent short-term advance against the Canadian Dollar, although the outlook against the Dollar is a little murkier.

"We maintain a bearish view on the GBP/USD outlook even if the selling looks quite extended on all time frames. If there is a bounce to be seen, this is likely to be short-lived. We reckon the cable could be heading to 1.20 and possibly 1.18 in the weeks ahead."

The Euro is tipped to recover in a decisive fashion against the Dollar as the U.S. Federal Reserve still looks on course to 'outcut' the European Central Bank (ECB) in 2024.

The British Pound can recover against the Euro as Germany's economic growth outlook deteriorates, but further losses against the Dollar can be expected.

Analysis of the world's most comprehensive dataset on how investors are positioned on foreign exchange markets suggests the Euro could be on track to test parity with the Dollar once more.

The British Pound is tipped to struggle against the Euro over the course of October as a hangover from a rough September extends, but weakness will likely remain limited as the Eurozone and UK economies are unlikely to diverge.

The Pound to Canadian Dollar exchange rate (GBPCAD) is looking to extend a short-term rebound in a week that will be dominated by the release of Canada's monthly labour market statistics.

The Pound's recent selloff against the Australian Dollar has eased over recent days but the exchange rate remains vulnerable to further losses, particularly if Tuesday's Reserve Bank of Australia (RBA) decision is more 'hawkish' than expected.

Pound Sterling is now impressively oversold against the New Zealand Dollar and we continue to look for a correction, but an important meeting of the Reserve Bank of New Zealand risks spurring the GBP/NZD exchange rate through the 2.0% if a 'hawkish' tone is struck.

EURUSD upside correction can extend, Gains to 1.0675/1.0725 possible.

Recovery from oversold conditions can extend, 1.2350 a potential short-term target.