US dollar forecasts and outlook: The Lloyds Bank June exchange rate forecasts

The US dollar (Currency:USD) is currently trading in negative territory against the British pound - GBP/USD is 0.11 pct in the red at 15662 at 11:57 on Wednesday following some better than expected employment data out of the UK.

Analysts at Lloyds Bank tell us:

"The dollar has had a volatile few weeks. It is down against the euro and sterling since our last IFO, but fal len most sharply versus the yen. Uncertainties about the strength of the US economy and the outlook for Fed policy continue to buffer global markets.

"Domestic economic data have been mixed but strong enough to encourage a further back up in bond yields as markets look for the Fed to start tapering QE before year end. International developments have been equally important for the currency. Improving investor sentiment has allowed the euro to stabilise.

"Meanwhile, the yen has been boosted by rising uncertainty over the effectiveness of the BoJ’s stimulus programme, which has put a cap on capital outflows. We remain optimistic about the outlook for the dollar, expecting firmer economic conditions and a move toward tighter policy to provide support."

To see a breakdown of the numbers please see the exchange rate table here.