Pound to Dollar Forecast

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.

Goldman Sachs says a recent rebound in GBP is partly a result of the disruptions in UK pension plans which has led to some significant, but temporary, repatriation back to the UK in order to raise capital.

Global Reach Group have released their latest pack of key Pound Sterling forecasts covering the remainder of 2022 and the first three quarters of 2023.

The Pound to Dollar rate has drawn a line under its late September losses and could now look to cement its grip on the recently recovered 1.10 level this week but will be sensitive along the way to the trajectory of the Renminbi and a series of important economic data releases from the UK and U.S. 

The cost of living crisis meets a cost of borrowing crisis, leaving the British Pound exposed to deeper losses against the Euro and Dollar say economists.

Where is the key resistance for this market and how far does it have to climb before it can reverse the damage wrought by Truss and her team?

Dip below 1.10 likely again says BMO, Kwarteng's tenure as Chancellor will be a short one.

The Pound to Dollar exchange rate has been on a rollercoaster ride of late but could find itself better supported if there is a determined attempt by the Peoples' Bank of China (PBoC) to stabilise the Renminbi in the Golden Week holiday and lead up to a key mid-October political event for China.

UK financial markets have been in turmoil since the UK Prime Minister Liz Truss’ mini-Budget.

The British Pound is undergoing a major adjustment lower that will only end once it has fallen below parity, says a leading economist.

The Pound to Dollar exchange rate is set to fall below 1.0 before the end of the year, according to new research.