Exchange Rate Forecasts

GBP/NZD will likely remain heavy over coming days although price action will likely remain choppy and the lows near 1.88 should be defended.

AUD is set to remain favoured against GBP over coming days.

The Pound to Dollar exchange rate came apart at the seams last week but would sustain deeper losses in the days ahead if a busy U.S. economic calendar or commentary from Federal Reserve (Fed) officials enable U.S. bond yields and the Dollar to build further on a nascent comeback. 

The Pound to Euro exchange rate unravelled to one month lows in turbulent trading for Sterling last week but had recovered its footing near an important layer of support on the charts ahead of the weekend and could now attempt to establish a firmer foothoold above roughly the 1.1757 level in the days ahead.

"It is difficult to see the light in the tunnel for GBP," says Swedbank.

'Peak Dollar' has not arrived say analysts at ING Bank, meaning the Pound's lows against the U.S. currency might still lie ahead.

"The FX market is getting tired of waiting for the BoE to actually deliver something more hawkish." - HSBC's Dominic Bunning.

Economists at NBC have updated clients with their latest Canadian Dollar forecasts.

Analysts at investment banks Goldman Sachs and HSBC are looking for New Zealand Dollar weakness in the wake of the mid-week Reserve Bank of New Zealand (RBNZ) policy update.

50bp rate hike likely midweek, tone set by RBNZ key to NZD trade.

AUD is underperforming its G10 peers at the start of the new week following the release of disappointing data from China, but it nevertheless looks well supported against the British Pound having broken out of a long-held range on Friday.

The Pound to Euro exchange rate has hugged its short, medium and long-term averages in recent trade and although this could continue in the days ahead, there is uncertainty over how it would respond to any up or down surprises in July’s inflation numbers due from the UK on Wednesday.

The Euro to Dollar exchange rate's (EUR/USD) recent rally will soon run out of steam and a retreat towards parity is again likely.

The Euro is set to test key levels against the U.S. Dollar as its recovery from levels below parity extends, say analysts.

Further New Zealand Dollar strength likely say economists at ANZ.

The Pound is "in trouble" says an analyst at Société Générale, who is looking for a fresh decline in the Dollar to transpire.

GBP/EUR has been under pressure for a number of days now and analysts tell us the near-term picture should see further downside, although a more protracted decline still remains unlikely.

Westpac sees the potential for further weakness in the New Zealand Dollar over the short term but by year-end the currency should be appreciating more noticeably.

EUR/USD is forecast to retreat back below the 1.0 level over coming weeks by analysts at Rabobank, the Dutch based international lender and investment bank.

CAD is tipped to maintain that outperformance over coming weeks, but by year-end it should start retreating against GBP and EUR.