Week Ahead Pound-to-Dollar Exchange Rate

The Pound-to-Dollar rate snapped a three-day winning streak on Friday and may see further losses if risk-aversion continues to upend global markets, but bullish charts and the UK's lead on coronavirus vaccinations have got some analysts suggesting new multi-year highs are only a matter of time.

The Pound-to-Dollar exchange rate sustained its worst intraday decline for months on Friday as investor risk-aversion lifted the U.S. currency against most rivals, although Sterling is widely tipped to benefit this week and thereafter from a quickening pace of vaccination and improving economic outlook.

The Pound-to-Dollar exchange rate is stalling having sustained its first weekly decline since early December and is tipped by some analysts for a further retreat over the coming days, in which Sterling will be vulnerable amid any further profit-taking by investors on wagers against the Dollar.

The Pound-to-Dollar exchange rate is on course to end the year within arm's reach of post-referendum highs as Britain's Brexit deal births a new era in UK and European relations while potentially insulating European currencies from any fallout relating to uncertainty over the U.S. 'stimulus bill.'

The Pound-to-Dollar exchange rate ended the week near to early-2018 highs that could be washed away in a correction lower over the coming days as the government's response to a new strain of coronavirus looms large over the economic outlook and as the Brexit clock runs down. 

The Pound-to-Dollar rate faces a testing period of heightened volatility and political theatre as a likely-phoney war plays out in the Brexit trade negotiations, although the latest manoeuvres from the two sides could offer Sterling an attempt at stabilisation on Monday. 

The Pound-to-Dollar exchange rate preserved its upward trajectory last week but is at risk of coming undone in the days ahead as a triple-shot cocktail of political risk threatens to pollute the atmosphere in markets, curbing risk appetite among investors and punishing Pound Sterling. 

The Pound-to-Dollar exchange rate had its wings clipped last week after investors were spooked by rhetoric from Brexit negotiators but it could join the Euro and other currencies in clocking multi-year highs over the coming days as the two sides edge toward an agreement.

The Pound-to-Dollar exchange rate rallied again last week but failed for a second time to overcome a key technical obstacle on the charts and could be in for a setback this week in response to the creeping prolongation of lockdown restrictions in the UK and elsewhere, which are seen offering support to the greenback. 

The Pound-to-Dollar exchange rate enters the new week near September highs but in a position of vulnerability as the charts warn of a correction lower and the Brexit trade talks look set to go down to the wire. 

The Pound-to-Dollar exchange rate outlook has been bolstered by an election victory for opposition candidate Joe Biden of the Democratic Party, although elevated stock markets, a looming deadline for a Brexit trade deal and technical resistance on the charts could all stymie the Pound in the days ahead. 

The Pound-to-Dollar exchange rate has been widely tipped for U.S.-election related gains this week but with the European coronavirus shutdown now spreading to the UK, while President Donald Trump closes the gap with his opponent in opinion polls, the risks for Sterling have shifted to the downside.

The Pound-to-Dollar exchange rate unravelled in the final moments of last week but could resist gravity over the coming day given nearby technical support levels, a bullish setup on the charts and seemingly improved odds of a Brexit trade deal, although the Dollar outlook itself is a bit of a wild card. 

The Pound-to-Dollar rate could be set to underperform as an elevated ‘no deal’ Brexit threat encourages investor caution, but absent a clear end of efforts to reach a trade agreement, Sterling may take its lead more from appetite for the Dollar and risk assets than it does the Brexit drama.

The Pound-to-Dollar exchange rate recovered further lost ground last week but is still susceptible to adverse Brexit headlines and could also face downside risks amid fears for the health of President Donald Trump over the coming days.

The Pound has unravelled amid a recovery of the Dollar but could now resist gravity ahead of this week’s update from Brexit negotiators, although the first U.S. election debate and European coronavirus situation could easily pull the rug from under Sterling mid-week.

The Pound-to-Dollar exchange rate rebounded last week but risks unravelling anew in the coming days as the government’s coronavirus response threatens the economic recovery and an EU trade agreement remains elusive, although much also depends on whether stock markets recover their poise. 

The Pound-to-Dollar exchange rate could stabilise at nearby levels in the days ahead after an escalation of  ‘no deal’ Brexit  fears and Sterling’s worst week since March lifted the Dollar Index, although with Brexit again scrawled over the British currency’s wall, further losses may also be likely sooner or later.

"The reversal from the 1.3500-1.3550 resistance, along with our cycle analysis, suggests a broader correction back to test the 1.30 support region should be seen" - Lloyds Bank.

The Pound-to-Dollar rate has broken higher from a narrow August range and is now targeting December's election rally highs amid an unravelling of the U.S. greenback, although lingering Brexit uncertainties, U.S. economic resilience and the oversold nautre of the Dollar could slow Sterling's ascent.