Exchange Rate Forecasts

"The next area of possible support would be at around 1.242; if that doesn’t hold we could then see a reversion to the major low posted near the end of May, i.e. at 1.232 or so" - The Technical Trader.

GBPEUR) is forecast to remain supported above 1.16 over the coming days after a late-August pullback failed around 1.1620 and the subsequent rebound opens the door to another test of the 2023 highs.

Pound Sterling appears vulnerable to losses against the Dollar over the coming weeks of September according to a new analysis released at the start of the new month.

The European Central Bank (ECB) is unlikely to be supportive of the Euro when it meets on September 14 according to one analyst we follow who has assessed the foreign exchange landscape following the release of stubborn Eurozone inflation data.

August has confirmed and bolstered the view that the Pound to Euro exchange rate has now entered a sideways pattern, but rising volumes and downside data surprises could break the range over the coming weeks.

"Euro-dollar is likely to come under selling interest if U.S. data revive Fed hike expectations, but the pair’s fate will not only depend on the U.S. data," says Charalampos Pissouros, Senior Investment Analyst at XM.com.

An analyst we follow says he favours buying the Pound against the Euro at these levels on a tactical basis, but the Euro could benefit in the short term if inflation numbers beat expectations.

The Australian Dollar is one of the worst-performing of the major currencies over the course of the past month and year but a better performance awaits into year-end say some analysts, noting the Reserve Bank of Australia will hike interest rates again and that Chinese growth disappointments are peaking.

The U.S. Dollar can maintain its recent trend of appreciation helped by favourable seasonal trends and will be untroubled by a recent rating agency downgrade of U.S. debt, shows new research from JP Morgan.

Goldman Sachs foreign exchange strategists say they are still Pound Sterling bulls, but they have lowered their forecasts for the Pound to Euro exchange rate in the wake of the Bank of England's August decision.

GBPNZD remains in a strong uptrend, short- and medium-term favour gains, empty calendar leaves central bank divergence in focus.

GBPAUD remains in a clear uptrend that could ultimately allow for further advances to fresh highs over the coming weeks, although near-term weakness is possible over the coming days of August.

EURUSD's pullback from highs near 1.12 is no surprise to analysts at Commerzbank who reckon further near-term softness is justified, but the bank says it is sticking with forecasts that show a robust recovery by the time the new year is upon us.

The British Pound's retreat from July highs against the Euro and Dollar could slow from here with one analyst saying the Bank of England's August policy decision and guidance had enough 'hawkish' elements to limit the prospect of further downside.

The broader backdrop is one that favours Pound sterling over euro, given the relatively elevated interest rate environment in the UK compared to the Eurozone.

A shift in commodity market dynamics and "less pessimistic" sentiment amongst key investors leads analysts at Macro Hive to say the Canadian Dollar's prospects are turning more constructive.

GBPNZD starts the new week on the defensive but there is a high likelihood that losses will be recouped over the coming days.

The Pound to Euro exchange rate remains in the upper quartile of the year’s range but an action-packed economic calendar, bond markets and the Bank of England (BoE) interest rate outlook could each or all push the boundaries of an anticipated 1.1633 to 1.1662 range for the week ahead.

Analysts are scouring the charts for clues as to what the European Central Bank's most recent guidance and decision means for the Euro's outlook against the Dollar.

It is too soon to bet against the Euro with Thursday's European Central Bank policy meeting likely to keep the door open to another interest rate hike in September, according to an analyst we follow.