Exchange Rate Forecasts

The Euro to Dollar exchange rate entered the new week close to five-year lows following a dire April month but could attempt a corrective rebound in the days ahead if the Federal Reserve (Fed) kicks a quantitative tightening, or QT, can down the road into the summer months. 

The Pound to Euro rate climbed from near April lows last week and may attempt to extend its recovery over the coming days but it would likely take a significant 'hawkish' surprise from the Bank of England for it to avoid succumbing to the implications of any gloomier set of BoE economic forecasts this Thursday.

The Euro can avoid a fall to parity against the Dollar, although the odds of this are decreasing say analysts.

Analysts at ABN AMRO have said they are slashing their forecasts for the British Pound on the belief the Bank of England is nearly done with rate hikes.

The coming week promises further losses for the British Pound unless the Bank of England announces a bigger than expected interest rate rise on Thursday.

"The regime of softer growth-higher inflation outlook has persisted and remains supportive of USD strength" - JP Morgan.

Russia is moving into the sphere of energy wars, and this can only weigh further on the Euro says investment bank MUFG.

The Euro to Dollar exchange rate's decline could see it approach, or achieve 1:1, say two analysts we follow.

Foreign exchange strategists at DNB Markets say the Euro's foray below the 1.08 USD marker won't last long and they expect a steady recovery into year end.

If the uptrend is still alive - as per Credit Suisse's research findings - this 2022 high can yet be retested and even broken.

GBP/CAD plumbing lowest since September 2019, could remain suppressed near 1.6200 short-term.

The Pound to Dollar rate entered the new week testing a major level of support on the charts and with only limited recovery prospects following a lengthy run of losses, while further declines remain a possibility due to an increasingly aggressive Federal Reserve (Fed) monetary policy stance. 

The Pound to Euro rate was dealt a setback last week as Sterling sustained widespread losses and the European single currency staged a short-lived rebound, although signs of a souring UK economic outlook could mean it’s set to remain subdued with limited prospects for recovery over the coming days.

Saxo Bank says the bashing received by Pound Sterling last week leaves it ready to turn tail against the Euro and head lower over coming days.

The Euro could fall to par the Dollar, or rise back to 1.15 says Italian lender UniCredit who see one of two scenarios playing out over coming weeks.

The British Pound's gains against the Euro are now 'in the bag' according to new research from a major Scandinavian lender and investment bank.

Swiss based investment bank Credit Suisse have lowered their forecasts for the South African Rand.

"The US dollar could be close to peaking" - MUFG.

New research finds the Dollar rally has some significant upside to come, suggesting EUR/USD is not done falling.

Foreign exchange strategists at Goldman Sachs are sticking with the Canadian Dollar, expecting it to outperform most rivals over coming weeks.