Researchers at Lloyds Bank have released their latest currency forecasts.
Forecast table and figures at end of article.
The update from the UK bank includes:
- Lowering the near-term pound dollar forecast, but confirming the British pound will rally into the end of 2015. For a full report on this, please visit here.
- The pound / euro exchange rate should rally to above 1.40. For the full report please see here.
Other key currency predictions:
Euro Dollar: “We see scope for a modest recovery in EUR/USD over the medium term. The extent of EUR short positioning suggests a lot of bad news is priced in. If, as we expect, EUR tail risks fade and the Euro area economy improves this should trigger a squaring of EUR short positions and support a EUR recovery.”
Australian Dollar: “With the FOMC expected to tighten US monetary policy in September, and the RBA pressing for a lower exchange rate to help re-balance the economy, there is scope for further downside in AUD/USD.”
Canadian Dollar: “Continued USD optimism and the possibility the BoC eases policy further should keep USD/CAD well supported. We forecast the pair to rise to 1.30 over the coming quarters.”
New Zealand Dollar: “We believe the combination of heightened speculation of RBNZ policy easing and increasing USD optimism should maintain the downside bias in NZD/USD. We forecast the pair to reach 0.70 by Q3.”
