The Pound-to-Dollar rate is short-term bearish but long-term bullish say charts. In the week ahead US jobs data and fresh UK sector specific data for December are expected to be the primary drivers.
The general view held by most analysts is for the Pound-to-Dollar to make gains in 2018 against a backdrop of easing Brexit risks and stunted US inflation.
Spending by tourists visiting the UK has surged at its fastest rate in seven years, according to recent data from the Office of National Statistics(ONS).
The UK economy grew by a modest 0.4% in the recent quarter, tourist spending surged and the current account deficit narrowed but the 2018 outlook remains uncertain.
Sterling may have gained a small respite from stronger UK economic data but this probably won't be enough to overcome an increasingly ugly chart.
The Dollar is forecast to decline in 2018 as growth in the rest of the world catches up with the US and currency upside from tax reform fails to materialise.
Markets fell on the news of the approval of the government's big tax reform package, which was the opposite to what had been expected, are investors being too negative?
Sterling is trading in a narrow range above 1.33 against the Dollar and most analysts are baffled by the extended sideways trend, but Swissquote has a clear view.
Democrat victory in Alabama erodes Republican majority at a time when not all senators are on-board with the tax-plan. Strategists eye 1.40 for Pound-to-Dollar in coming months.
The Pound-to-Dollar may have lost ground in December but looking at the bigger picture reveals the potential for more upside; and it's not just us, other analysts agree.
Today sees the release of the US Non-Farm Payrolls report which is the US Dollar's biggest single driver, with several analysts suggesting an upside surprise is possible.
The Dollar is overvalued and must fall whilst the Pound must rise since pressing the 'nuke' button of a 'no-deal' Brexit is simply not an option worth considering.
The Pound-to-Dollar is breaking out higher, and could go all the way to 1.4000 as long as the Irish border issue doesn't get in its way, says LMAX's Joel Kruger.
The Pound-to-Dollar is marginally more likely to rise than fall after repeated rejections to the downside, with 1.33 the next key obstacle higher.
The UK's trade deficit grew to -18.1bn in September as the country continued to import more than it exports - Sterling probably weakened as a result.
Economist Taylor may still be in line for number two position at the Fed, says Commerzbank analyst.
US jobs data for October has come out at only 261k, which was below the 312k expected by the market, and this is weighing on the Dollar - although the 0.0% rise in wages could be the bigger factor responsible for the fall.
The Dollar rose marginally on Thursday after Republicans unveiled their much-anticipated tax reform plan, however, the increase was well below that which had been anticipated.
The Pound temporarily appreciated on Thursday after the release of survey data showed the Construction sector shifting from contraction to expansion in October.
The Dollar is rising and price charts support this notion - both against a broad field of counterparts and versus the Euro - says one major investment bank.
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