Pound to Dollar Forecast

The U.S. Dollar remained close to the top performing currency of 2022 this week but a decisive turn lower may not be that far off and this is something that would be likely to favour developed market currencies over their emerging market counterparts, according to research from Goldman Sachs. 

Citi says the British Pound will retreat towards 2022's lows over the coming months.

Technicals look for more GBP/USD upside.

The Pound to Dollar exchange rate reached multi-month highs last week after Federal Reserve (Fed) and Chinese health officials appeared to inspire in investors an almost Pavlovian appetite for chasing risky assets but it remains to be seen if the rally can survive this week's U.S. economic data offering.

GBP is near multi-decade lows and the risk of a major decline is limited, says NatWest Markets as it assesses the currency's prospects for 2023.

The Pound to Dollar exchange rate has reversed more than one half of this year's decline but will now run the risk of a corrective setback that could pull it toward 1.20 or perhaps even back below there over the coming days. 

HSBC sees USD uptrend ending, upgrades GBP/USD forecasts.

GBP/USD technicals broadly positive as near-term USD retreat remains intact.

The Pound has rallied to a new three-month best against the Dollar as the major unwind of the U.S. currency sparked by last week's U.S. inflation data release extends.

BNZ is in the process of upgrading its NZD forecasts.

GBP/USD in strong comeback, suggests the multi-year low is now in.

Investors can expect the dollar surge to likely continue well into 2023.

USD could be in the final phase of its multi-month rally according to analysts at Capital Economics, although they warn it is still too soon to prepare for the Greenback to roll over and turn trend.

The Pound to Dollar rate has rebounded sharply from earlier losses and may attempt to recover further in the days ahead but it could also be at risk of unravelling again if this Thursday's inflation data provides an endorsement of the Federal Reserve's (Fed) ever more hawkish interest rate stance.

"Better, but not good," is how Goldman Sachs analyst Michael Cahill describes the British Pound's prospects in the wake of Rishi Sunak's anointment as Prime Minister.

The Pound to Dollar rate has regained the ground lost in September but its recovery could lose momentum this week or potentially even stall entirely due to uncertainty about the outcome and implications of forthcoming interest rate decisions from the Federal Reserve (Fed) and Bank of England (BoE).

The Pound to Dollar exchange rate has rallied strongly in recent trade and may rise further in the short-term but will run the risk of a setback as the week goes on when forthcoming economic data is likely to see attention return to the increasingly divergent prospects of the UK and U.S. economies.

Foreign exchange analysts at BMO Capital say the near-term outlook for the Pound has improved considerably and further gains are possible if the UK leadership is changed in the next two weeks.

The Pound to Dollar exchange rate has rebounded sharply in recent trade but could need a setback for the Dollar to rise further this week and partly because Sterling faces risks associated with the prospect of another Prime Minister being ousted from office in the Banana Republic of Westminister.

Foreign exchange strategists at Nomura are as sure as they possibly can be that the Pound to Dollar exchange rate is on course for a substantial decline that takes it below parity.