Rabobank Forecast Update: Central Bank Race to the Bottom Dethrones King Dollar

Pound Sterling could embark upon a gradual recovery from recent losses in the months and quarters ahead after 'King Dollar' is dethroned by the Federal Reserve (Fed) amid an ongoing central bank race to the bottom of the interest rate ladder, according to the latest forecasts from Rabobank. 

The Pound is expected to lag many rivals in an anticipated riposte to a U.S. Dollar that has dominated the currency market for fifteen months now, according to the latest forecasts from TD Securities, while the Euro is still expected to climb gently into year-end and even the Antipodean currencies that were blighted most by the greenback last year are now seen having their moment in the sun.

The Pound is likely to remain depressed into year-end and beyond according to the latest exchange rate forecasts from Barclays, while both the Dollar and Euro are set to face trials and tribulations of their own before the curtain closes on 2019. 

The Pound is facing a protracted period of weakness into year-end as the risk of a general election and socialist government mounts, according to the latest forecasts from ING Group, while the Dollar is just months away from a turn lower that brings its 18-month rally to an end although the Euro is unlikley to benefit from this any time soon. 

Currency markets are still due a regime change in 2019 as the global economic league tables turn agains the U.S. economy, according to CIBC Capital Markets forecasts, but a resolution of the U.S.-China trade war will be necessary first. 

The Pound is set to rise against the Euro and Dollar this year, according to the latest forecasts from Lloyds Bank, thanks to a resilient economy and a reduction of so-called no deal Brexit risk.

The foreign exchange market has spent much of the opening months of 2019 in a state of flux, with major currencies remaining locked within familiar ranges, but the latest forecasts from Commerzbank warn of a decisive shift in the landscape being in the cards for the months ahead. 

Currency markets entered a new stage of flux this year amid heightened uncertainty over the global economic outlook, leading major exchange rates to trade within tight ranges thus far in 2019, although analysts at Credit Agricole are confident that a regime change is on the horizon.