Exchange Rate Forecasts

HSBC predicts GBP & EUR to turn tables on GBP in 2023.

NBC has released research showing the Canadian Dollar will be one of 2023's better-performing currencies amidst ongoing economic outperformance, while the Pound and Euro will continue to struggle.

The British Pound will lose value to the Euro and Dollar over the duration of 2023 says J. Safra Sarasin, a private Swiss bank, in a year-ahead research briefing.

"We think a bullish scenario for the UK (and its currency) could come as a surprise to many in 2023" - Morgan Stanley.

Foreign exchange analysts are considering the prospect of a near-term retreat in GBP/USD back below the psychologically significant 1.20 level.

Pound Sterling will lose "notable" value against the Euro says a new analysis from global investment bank MUFG, although other analysts say the UK currency can advance in value during 2023.

The Pound to Canadian Dollar exchange rate entered the new week near to nine-month highs but could be likely to consolidate its recent gains around 1.65 in the days ahead unless the Loonie finds reason for further underperformance in Canada's latest inflation and economic growth numbers.

The Euro to Dollar exchange rate reached eight-month highs last week but could struggle for traction this week if profit-taking or book-squaring ahead of the festive holiday leads the speculative market to reduce its exposure to the single currency, which is one of the market's few 'net long' positions. 

The Pound to Dollar exchange rate was toppled at six-month highs last week as deteriorating economic data and hawkish central banks drove a rout in risky assets but Sterling could benefit this week if the forthcoming holiday period leads the speculative market to lighten up on its own risk for a while. 

The Pound to Euro exchange rate fell heavily last week and still faces numerous medium-term headwinds but could be likely to find its feet around 1.1450 over the coming days if risk reduction ahead of the forthcoming holiday period leads the speculative market to cut back bets against Sterling. 

The Pound to Euro exchange rate was trading at substantially reduced levels ahead of the weekend but could have further to fall if the TD Securities strategy team is on the money when looking for Sterling to slip lower to around 1.13 in the fortnight or so to come.

A leading Canadian lender and commercial bank says the Canadian Dollar will strengthen against the Pound and Euro over the duration of 2023, ensuring a recent trend of appreciation proves short-lived.

AUD forecast to strengthen in 2023 by NAB.

Australian interest rates are unlikely to rise as high as they will in other developed nations, implying a 'carry disadvantage' that leaves analysts at NatWest Markets bearish on the Australian Dollar for 2023.

The Euro to Dollar exchange rate has held onto much of November gain in early December trade but technical resistances continue to frustrate its path above 1.06 and Tuesday's U.S. inflation data is likely to be decisive of whether it can overcome those obstacles on the charts in the week ahead.  

The Pound to Dollar exchange rate has remained buoyant near nine month highs in recent trade but it could be volatile in the days ahead when a pending deluge of important UK and U.S. economic data points will set the stage for the latest interest rate decisions from the Federal Reserve (Fed) and Bank of England (BoE).

Citi says the British Pound will retreat towards 2022's lows over the coming months.

Technicals look for more GBP/USD upside.

EUR/GBP a sell in 2023 says Danske.

The lows for the Euro are in the rear-view mirror and the next big move is likely to be higher, says NatWest Markets.