The Pound-Australian Dollar rate advanced to a one-month high on Wednesday as fundamental tailwinds enabled Sterling to continue outperforming, although gains over its antipodean counterpart have brought the British currency within arm's reach of the top spot among majors for 2021.

The Pound-to-Australian Dollar rate could recover briefly to levels not since this May in response to any Brexit trade agreement announced over the coming weeks, NAB forecasts suggest, although the bank has also warned that heavy losses could befall Sterling this week if the UK walks away from the negotiating table. 

The Australian Dollar was down on its luck Friday amid a rebound in U.S. exchange rates but forecasts were in the spotlight as analysts remained bearish in their outlooks for the American currency while taking stock of improved prospects for commodity prices, leading to widespread upgrades. 

The Australian Dollar attempted a feeble riposte against the U.S. Dollar on Friday but the Antipodean currency could be facing further losses during the weeks and months ahead if interest rate forecasts made by National Australia Bank (NAB) prove to be correct.

Foreign exchange strategists at NAB have revised their forecasts for the New Zealand Dollar in the new year, and show the Pound should climb above the 2018 highs (at 2.04) and reach 2.08 in 2019 - a level not seen since 2015.

Forecasts for the Australian Dollar against the Pound, Euro and U.S. Dollar from Australian lender NAB.

Currency markets have been volatile in 2018 but the closing stages of the third-quarter are most likely to herald a continuation of recent trends, with President Donald Trump the only wild card, according to the latest exchange rate forecast update from National Australia Bank. 

Foreign exchange analysts at NAB have announced they are upgrading their forecasts for Pound Sterling.

Foreign exchange analysts at global financial services provider NAB have announced an update to their forecasts for the Euro to Dollar exchange rate (EUR/USD).

Taking a look at the likely implications for the EUR/USD rate following the UK’s referendum.

The near-term outlook favours more Aussie dollar strength, but both institutions are forecasting weakness towards the end of 2016.