Pound to Dollar Forecast

The Dollar is in charge, but the pace of recent advances could be a case of 'too fast, too soon' and a pullback could be on the cards this week.

Pound Sterling's solid recovery late last week following the U.S. job report blowout offers a telling clue as to how this week's price action might pan out.

The Dollar is on a charge, backed by consensus-beating U.S. data that means the U.S. Federal Reserve will likely cut interest rates after the Bank of England and European Central Bank.

Dollar weakness in the second half of 2024 is a high-conviction call for economists at Wells Fargo, one of the biggest main street lenders in the United States.

Ongoing Dollar strength will ensure one of the world's top forecasters stays ahead of the pack with its counter-consensus expectation that the Greenback will outperform in 2024.

The Pound to Dollar exchange rate's technical setup has broken down, and further weakness is likely in a week dominated by the release of the U.S. PCE inflation report.

With UK inflation not offering much direction for the Pound to Dollar, all eyes now turn to the Federal Reserve policy update, due at 18:00 UK time.

"A Sterling reputation" is the title of a new report from Goldman Sachs, in which the company announces an upgrade to its forecasts for the Pound to Dollar exchange rate.

Pound Sterling has retreated from its March highs against the Dollar and risks a further setback if UK inflation disappoints and the Federal Reserve strikes a hawkish tone.

The Pound to Dollar exchange rate's recent setback has been shallow and the broader backdrop remains supportive, says Fawad Razaqzada, an analyst at City Index.

Pound Sterling could hit fresh multi-month highs against the Dollar this week, underpinned by positive technicals. However, any undershoot in UK wage data - or overshoot U.S. inflation data - could prompt a sharp pullback.

Bank of America has just released a call to buy the Pound-Dollar exchange rate (GBP/USD), citing the UK's Spring Budget announcement.

Pound Sterling has held up better against the dollar than most in 2024, but this resilience will be tested on Friday when a crucial U.S. jobs report is released.

The Dollar may surge if the market realises that the Federal Reserve won't cut interest rates in 2024, as now anticipated by a major American money manager.

Pound Sterling is favoured over the Dollar this week thanks to an improved technical setup, a well-understood Fed rate cut repricing story and month-end flows.

One of Wall Street's biggest banks has raised its forecasts for the British Pound, saying it can benefit from its newfound status of "the USD of Europe".

The Pound to Dollar exchange rate retreated further last week but the losses remain relatively constrained and we see the potential for some slight upside in the coming days.

The Pound to Dollar exchange rate remains well supported and the coming week's heavy UK and U.S. economic calendars could offer the chance of a return to the 1.27 level.

The Pound to Dollar exchange rate has broken through the 1.26 level, but an analyst says a trapdoor awaits just below here.

The Pound to Dollar exchange rate risks further declines over the coming week unless Monday's release of ISM employment figures dents the Dollar's advance.