Pound Forecast

The headwinds facing the British Pound are "very strong" according to new analysis from Rabobank, which forecasts the printing of fresh 2022 lows against the U.S. Dollar within weeks.

Pound Sterling is set to complete a third successive weekly decline against the Euro.

The Pound to Dollar exchange rate hit new multi-decade lows last week before rebounding ahead of the weekend but whether it can extend this move likely depends on the market response to U.S. inflation data that could be instrumental in shaping the policy stance of the Federal Reserve next week. 

GBP selloff by no means over according to a major investment bank, despite hopes that the new government of Prime Minister Liz Truss can alter the outlook for the UK economy for the better.

Foreign exchange analysts at a major European investment bank have lowered their forecasts for GBP/USD.

The UK economy is hard-wired to weaken its currency over the long-term, according to new analysis conducted by HSBC.

Capital Economics release dire predictions: this will be GBP's biggest crisis to date.

As the energy crisis and the lack of government continue to take bites out of the British Pound, we are taking a look at the charts to see if they will give an idea of how far the Pound will fall.

"The long term GBPUSD chart now truly looks awful" - Citi.

Timing the Dollar's unyielding rally remains one of the key questions for financial and global markets at present: there is a sense that the rally is nearing its top, but exactly where the top is and when it will finally turn is harder to divine.

Morgan Stanley updates GBP forecasts, says GBP/EUR's peak has now passed, but GBP/USD to cross 1.20 in mid-2023.

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.

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

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

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 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.