Pound to Dollar Forecast

Investment bank Goldman Sachs has slashed its forecasts for the British Pound, showing further losses against the Euro are likely and a retest of the recent lows against the Dollar are likely.

The Pound to Dollar exchange rate opened the new week with a dramatic fall to new all-time lows but could be likely to stabilise around, or perhaps even above the 1.05 level in the days ahead if the author reads the current market environment correctly, meaning the bottom may already be in for Sterling.

Matt Weller, Global Head of Research of City Index, details what to watch on the path to pound parity.

The Pound to Dollar exchange rate slipped to new forty year lows at the opening of a holiday-shortened week but could be headed for some exceptional volatility including a possible midweek rally by Sterling as well as potential 'Black Thursday' style slump toward its lows from 1985. 

The headwinds facing the British Pound are "very strong" according to new analysis from Rabobank, which forecasts the printing of fresh 2022 lows against the U.S. Dollar within weeks.

The Pound to Dollar exchange rate hit new multi-decade lows last week before rebounding ahead of the weekend but whether it can extend this move likely depends on the market response to U.S. inflation data that could be instrumental in shaping the policy stance of the Federal Reserve next week. 

GBP selloff by no means over according to a major investment bank, despite hopes that the new government of Prime Minister Liz Truss can alter the outlook for the UK economy for the better.

Foreign exchange analysts at a major European investment bank have lowered their forecasts for GBP/USD.

The Pound to Dollar exchange rate sustained heavy losses last week but now risks falling further after a Russian state energy supplier announced an indefinite suspension of gas deliveries to Germany, which could weigh heavily on the Euro and other European currencies in the days ahead.

Capital Economics release dire predictions: this will be GBP's biggest crisis to date.

As the energy crisis and the lack of government continue to take bites out of the British Pound, we are taking a look at the charts to see if they will give an idea of how far the Pound will fall.

The Pound to Dollar rate slipped to a new post-pandemic low to open the holiday-shortened week but could fall further yet if the Federal Reserve's (Fed) increasingly gloves-off approach to inflation continues to dampen risk appetite in another important week for the U.S. economic backstory.

"The long term GBPUSD chart now truly looks awful" - Citi.

Timing the Dollar's unyielding rally remains one of the key questions for financial and global markets at present: there is a sense that the rally is nearing its top, but exactly where the top is and when it will finally turn is harder to divine.

Morgan Stanley updates GBP forecasts, says GBP/EUR's peak has now passed, but GBP/USD to cross 1.20 in mid-2023.

The Pound to Dollar exchange rate came apart at the seams last week but would sustain deeper losses in the days ahead if a busy U.S. economic calendar or commentary from Federal Reserve (Fed) officials enable U.S. bond yields and the Dollar to build further on a nascent comeback. 

'Peak Dollar' has not arrived say analysts at ING Bank, meaning the Pound's lows against the U.S. currency might still lie ahead.

"The FX market is getting tired of waiting for the BoE to actually deliver something more hawkish." - HSBC's Dominic Bunning.

The Pound to Dollar exchange rate attempted to extend its month-long recovery last week but was unable to establish a new high and could now be headed for a period of consolidation unless an action-packed economic calendar provides a catalyst for a fresh advance in the days ahead.

The Pound is "in trouble" says an analyst at Société Générale, who is looking for a fresh decline in the Dollar to transpire.