The New Zealand Dollar was tipped again on Thursday to achieve new three-year highs ahead of year-end, but will now be aided in its advance by Wellington's increasingly apparent opposition to the Reserve Bank of New Zealand's (RBNZ) flirtation with a negative interest rate policy. 

Pound Sterling remains among the worst performers for 2020 and the economy one of the most badly affected by the coronavirus, although if an acrimonious Brexit is avoided this month, both the economy and currency could quickly become a contrarian's contenders for outperformance in 2021. 

The New Zealand Dollar remained an outperformer on Tuesday as investors continued to reward a brighter domestic economic backdrop that may remain a headwind for the Pound-to-New Zealand Dollar rate even if the UK government is successful in securing a Brexit trade deal. 

Australia's retail recovery is only at its beginning despite strong  growth in October announced overnight, although the Australian Dollar underperformed on Friday and is expected to remain more sensitive to the evolving global outlook than domestic developments, according to economists and strategists.

Australia's Dollar was again an outperformer among major currencies on Friday as risk appetites recovered into the weekend, although the antipodean unit has been tipped by Westpac for a break above September highs in the week ahead, which is seen placing it on course to score a near-three-year high next month.

The Australian Dollar fell widely on Thursday amid a rebound in U.S. Dollar exchange rates, but could remain on the back foot for weeks yet resistance bars its path higher on the charts while coronavirus developments keep the negatively correlated greenback from falling to new lows.

The Euro-to-Dollar exchange rate rallied on Wednesday as U.S. pre-election politics remained the dominant driver of financial markets although it’s a dearth of homegrown domestic inflation that is the greatest and longer-lived threat to the uptrend in the single currency, Westpac says. 

The Pound-to-Australian Dollar rate is bottoming out according to Westpac, which says Sterling should now trade in a narrow range during the final quarter after the Aussie was wobbled by a U.S. Dollar rebound and as investors navigate the pitfalls of November's U.S. presidential election. 

The Euro-to-Dollar exchange rate edged higher on Wednesday and is likely to advance further in the months ahead, according to analysts at Westpac, who say the single currency is “not overvalued” yet and that European Central Bank (ECB) concerns about recent gains might be misplaced. 

The Australian Dollar was down on its luck Friday amid a rebound in U.S. exchange rates but forecasts were in the spotlight as analysts remained bearish in their outlooks for the American currency while taking stock of improved prospects for commodity prices, leading to widespread upgrades. 

The New Zealand Dollar will weaken again this year as the Reserve Bank of New Zealand (RBNZ) cuts its interest rate to a new record low, according to the latest forecasts from Westpac, which should drive the Pound-to-Kiwi rate higher even as the UK economy sits in limbo half in and half out of the EU.

The Australian Dollar was listless during morning trading Wednesday but is likely to see steep losses later in the year, according to the latest forecasts from Westpac, which are expected to drive the Pound-to-Australian-Dollar rate up to a post-referendum high despite the ongoing Brexit farce in the UK parliament. 

Anxiety of a leadership challenge on Prime Minister Theresa May to fade during Parliament's recess while a Bank of England interest rate rise is tipped to add to confidence in Sterling.

Aussie lender Westpac is still bearish the Australian Dollar despite contrary signs from charts and the views of other analysts.

Pound Sterling is shown to be the most undervalued major global currency at present having been unable to recover from the steep decline following the UK’s EU referendum held in June 2016.

Foreign exchange strategists at Westpac Bank in Sydney say they are looking to bet on a rebound in the Pound against the Euro. Here is their reasoning.

Analysts at Westpac Bank in Sydney are calling time on Pound Sterling’s recent strong run against the Australian Dollar.

It has been a good month-to-date for the Euro which currently holds the crown of the second-best performing currency in the G10 complex.

Analysts at Westpac have briefed clients on a new trading strategy that looks to profit on impending weakness in the British Pound.

The Aussie Dollar is the strongest currency in the G10 having risen an average of 6.7% versus its counterparts in 2017.