Analysts at Lloyds Commercial Banking have released their monthly currency report; below are the highlights for key Sterling pairs.
Lloyds expect GBP/USD to remain broadely "rangebound" in a zone around 1.3000 as both currencies weaken, with political risk in the US due to Trump's policies getting blocked cancelling out a less hawkish Bank of England (BOE) and Brexit unease.
GBP/EUR is likely to remain rangebound around the 1.1000 level with risks tilted to the downside (in favour of the Euro) as Eurozone data is likely to outperform UK data.
A constructive view of the Australian economy, China and commodity prices supports the outlook for Aussie Dollar whilst the Pound remains vulnerable to Brexit uncertainty and central bank inertia, leading to a likely drop in GBP/AUD.
Lloyds have a positive view of CAD seeing more upside potential from rising oil prices and central bank tightening. This should see the currency strengthen versus the Pound. GBP/CAD to fall.
GBP/NZD may move sideways due to a negative view of the Kiwi (NZD) after poor recent data, especially inflation falling from 2.2% to 1.7% and employment retracing marginally. RBNZ is highly unlikely to lift rates for a long time and remains the implacable foe of a strong Dollar. GBP/NZD stuck in a range.