CIBC Capital Markets Forecast Update: GBP Appreciation and USD Depreciation Ahead

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. 

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 the latest CIBC Capital Markets forecasts suggest a regime change is on the horizon. 

The Australian Dollar is still likely to rise this year, according to the latest forecasts from Commonwealth Bank of Australia, although a litany of domestic and international headwinds mean the upside is only limited. 

The U.S. Dollar is in retreat from its 2018 highs and will remain so throughout this year, according to the latest forecasts from MUFG, enabling currencies like the Pound, Euro and Australian Dollar to recover from earlier losses. 

The Dollar will remain the dominant force in the global currency market next year and Pound Sterling will succumb to another dose of 'Brexit uncertainty', according to the latest forecasts from Barclays, while the Euro will reach new lows.