Exchange Rate Forecasts

Buy the Pound against the Euro ahead of the February 02 Bank of England meeting says Barclays.

GBP/AUD looks to test key support on big drop that follows AUD/USD's break through 0.70 resistance.

The Euro to Dollar exchange rate entered the new week at nine-month highs and with scope for an extended recovery above above 1.09 and toward the 1.10 handle as a more benign global economic backdrop and hawkish European Central Bank (ECB) policy stance benefit the single currency.

The Pound to Dollar exchange rate has rallied close to six-month highs and could rise further in the days ahead with a break above technical resistance at 1.2504 and an approach of 1.26 possible if UK and U.S. economic data remains conducive to a continued rebound for riskier currencies. 

Deutsche Bank has dropped a long-standing negative stance towards the British Pound as it observes a number of fundamental improvements that should shore up the currency going forward.

UK current account back to equilibrium levels, leaving GBP fairly priced vs. EUR.

The Federal Reserve is on course to cut interest rates as early as mid-2023 according to new research and the Euro will appreciate "significantly" against the Dollar as a result.

It will be the return of Chinese citizens that offers the biggest boost to the country's export growth, which aids a bullish AUD view, says HSBC.

Morgan Stanley says it has "doubled down" on its bearishness towards the U.S. Dollar in 2023, prompting it to lift its Pound to Dollar exchange rate forecast.

GBP/AUD could fall below 1.70: Rabobank, UBS sees AUD/USD upside over coming months, "We expect AUD/USD to outperform" says Barclays.

The Pound to New Zealand Dollar exchange rate has held within a narrow range thus far in the New Year and could be likely to test the boundaries on either side of this corridor over the coming days as Sterling and the Kiwi navigate a series domestic and international event risks.

Barclays has raised its forecasts for the Euro to Dollar exchange rate in 2023 but warns the pair could yet end the first quarter lower than at current levels.

The Swiss Franc is forecast to remain strong in 2023 on the back of a resilient domestic economy and its inflation advantage says Swiss private bank, J. Safra Sarasin.

Peak pessimism towards the British Pound may be close to passing says a year-ahead research publication from MUFG, the global investment bank and lender.

Bank of America says it holds a positive outlook on the Canadian Dollar in 2023 and is more bullish on the currency's prospects than implied by the consensus forecast.

The Pound to New Zealand Dollar exchange rate entered the new week on the front foot and may have scope to edge higher in the days ahead although a cluster of moving averages located around the 1.93 level could eventually frustrate Sterling's recovery.

The Pound to Australian Dollar exchange rate entered the new week multi-month lows but would risk falling to some of its softest levels since late September if the currently outperforming antipodean currency remains ascendant in the days ahead. 

The Euro to Dollar exchange rate entered the new week supported by a rising global market tide that could see nine-month highs around 1.08 traded over the coming days but Thursday's U.S. inflation figures are a potential banana skin for the single currency.

The Pound to Dollar exchange rate has sharply reversed its New Year losses and could rise further this week if global markets build on last Friday's gains but public remarks from Federal Reserve (Fed) officials and the latest U.S. inflation figures are potential risks to the recovery.

The Pound to Euro exchange rate has appeared to be drawing a line under its December decline and could have scope to reverse some of its recent losses this week if global markets remain on the front foot and Sterling is able to navigate risks lurking in the domestic appointment book without upset.