Pound to Dollar Forecast

The Pound to Dollar exchange rate drew a bid from the market when falling near to the 1.20 handle ahead of the weekend but could slip back toward or even below that level later this week if July’s U.S. inflation figures offer a further incitement to the still-hawkish Federal Reserve (Fed). 

The Pound to Dollar exchange rate rallied to one month highs above 1.22 last week but the going could get tougher in the days ahead when it will navigate a minefield of U.S. economic data risks just as the shadow of the Bank of England (BoE) looms larger and larger over Sterling. 

"I reckon we will see the likes of GBP and EUR, currencies that have performed very poor so far this year, stage a recovery against the greenback".

Wells Fargo confirms the Dollar will remain dominant over coming weeks, but strength should wane from the first quarter of 2023.

The Pound to Dollar exchange rate ended last week back above 1.20 and may have an opportunity to recover further, with a test of the 1.21 handle a possibility, if the Federal Reserve (Fed) sticks on Wednesday to its June plan to steer interest rates toward a “modestly restrictive level” by year-end. 

Foreign exchange strategists at Morgan Stanley have upgraded their stance on the British Pound to neutral.

The Pound to Dollar exchange rate corrected higher from near coronavirus crisis lows ahead of the weekend but could attempt to recover further lost ground with a run toward 1.20 in the days ahead if softer market pricing of the Federal Reserve (Fed) interest rate outlook continues to weigh on the greenback.

The Pound to Dollar exchange rate has stubbornly recovered the 1.20 handle but faces a battle to hold onto it in the days ahead during which it will be at risk of a slide toward the round number of 1.18 and may have difficulties in extending any further advance far above the 1.21 level. 

GBP/USD down 1.45 already this week, could be at 1.15 by end-July, Terms of Trade suggest parity even possible.

The British Pound will continue to lose value against the U.S. Dollar from current levels say foreign exchange strategists at JP Morgan.

The Pound to Dollar rate tumbled back below 1.20 late last week but was quick to draw a corrective bid from the market and could attempt to reverse more of its recent decline if the greenback extends Friday's retreat from other currencies in the days ahead.

Standard Chartered's wealth management division are bearish on the U.S. Dollar on a six to twelve month view as they sense a major turning point for global currency markets is approaching.

The British Pound has not reached a bottom according to new research from UK high-street lender and international investment bank Barclays.

The Pound to Dollar exchange rate has clung onto much of the gain made in the wake of June’s Bank of England (BoE) policy decision but without any further corrective decline by the Dollar, Sterling could be likely to consolidate within roughly a 1.2171 to 1.2323 range during the week ahead.

"We maintain our view that the USD is likely to be stronger for longer" - Rabobank.

The Pound to Dollar rate rebounded sharply from near March 2020 lows last week and could look to extend its recovery in the days ahead but much depends on U.S. bond yields and the impact of remarks from Federal Reserve (Fed) policymakers as well as a looming flurry of UK economic figures.

The domestic highlight for the British Pound this week will be the release of inflation data on Wednesday although Friday's retail sales read will also be highly anticipated.

The Pound to Dollar exchange rate entered the new week nursing fresh wounds near two-year lows and would risk further heavy losses in the days ahead without a ‘hawkish’ surprise from the Bank of England (BoE) or a possibly unlikely show of patience from the Federal Reserve (Fed).  

The Pound to Dollar rate enters the new week with its back against the ropes near the 1.25 handle and could struggle to hold off a buoyant greenback ahead of Friday’s all-important U.S. inflation figures for May, which could be key to whether Sterling is able to avoid a retest of last month’s lows.

Seasonal factors could help extend a recent recovery in the Pound to Dollar exchange rate say foreign exchange analysts at Société Générale.