Exchange Rate Forecasts

GBP/USD recovery disrupted by soft U.S. data, as resistance stymies path above 1.25 on chart.

GBP/EUR near year's highs but with obstacles ahead.

"I reckon it is a matter of time before the EUR/USD breaks that barrier" - Fawad Razaqzada, City Index.

The Pound to Dollar exchange rate eased from close to one-year highs in the final session of a holiday-shortened week for some markets but the trend on the charts has shifted in favour of further gains and many analysts are tipping new highs for the months ahead. 

GBP/EUR rallies continue to be frustrated by selling pressure that ultimately tends to dump the pair back into a well-trodden range.

Currency tacticians at HSBC are looking for the Dollar to test 2023 lows over the coming weeks, allowing for a higher EUR/USD.

The British Pound is a 'buy on dips' as a brighter UK economic outlook combines with a broader Dollar retreat to keep 2023's uptrend in GBP/USD say analysts.

The British Pound's outlook remains upbeat in the near term although headwinds will likely ensure the prospect for substantial gains remains limited, according to one of Europe's largest commercial and investment banks.

The New Zealand Dollar is set to take the limelight midweek when the RBNZ is expected to raise interest rates by a further 25 basis points as it continues its fight against elevated domestic inflation levels.

"In terms of alpha-generation – we like being short GBP/CAD from here" - CIBC.

Euro exchange rates can depend on further interest rate hikes at the European Central Bank (ECB) on news inflation in the Eurozone's largest economy continues to see broad-based inflationary pressures.

GBP/EUR could fall below 1.10 says Morgan Stanley, such levels are associated with 'crisis'.

USD/JPY rallied strongly midweek, gaining nearly 150 pips. Mathew Weller, Global Head of Research at FOREX.com says the next levels of resistance to watch are at 132.850 and 135.00 if the near-term rally extends.

The Dollar index is poised to extend its recent run of losses, according to a new analysis, a move that will offer a near-term boost for EUR/USD.

A move to 1.27 would offer Sterling sellers their greatest purchasing power since April 2022.

Goldman Sachs says it is turning more constructive on the Pound's prospects amidst a broadly improved domestic environment, but it is still too soon to get outright positive.

EUR/GBP a sell this week says Crédit Agricole model, Equals Money notes GBP/EUR to be in an uptrend.

GBP/USD recovery intact but facing resistance overhead.

GBP/EUR attempting recovery of key average at 1.1389  

The Dollar is ultimately set to appreciate against the Euro over the coming weeks and months say analysts at Danske Bank.