The British pound is today enjoying advances against the US dollar; at 9:22 we see the pound to US dollar exchange rate 0.08 pct in the blue at 1.5239.

(Note: This is a spot market quote to which your bank will affix their own discretionary spread. Also note that an independent FX provider will guarantee to undercut your bank's offer, thus delivering more currency. Please learn more here).

Those hoping for further advances in the GBP-USD rate will however be disappointed say analysts at Deutsche Bank.

Deutsche Bank forecasts GBP-USD declines

Bilal Hafeez at Deutsche Bank in London is backing strong US dollar gains through the reminder of 2013:

"EUR, GBP, SEK and CHF are roughly within 1% of their starting levels against the USD from three months ago. It is tempting to write these currencies off, but we continue to look for notable dollar strength against GBP, CHF and EUR. An earlier Fed exit from easing steps, stronger growth and a shift in capital flows should help the dollar for the balance of the year."

Bernanke’s testimony on Wednesday has done nothing to change this view: Tapering will still likely start in September, and US
stocks continue to perform well.

To see the latest exchange rate forecasts table from Deutsche Bank please visit this page.

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