The British Pound may rally on occasion, but don’t mistake this for a return to an upside trend say Credit Agricole.

Deutsche Bank are convinced speculators should be chasing the AUD lower and set out their justifications for the call.

The decline in the British pound against the US dollar is only going to accelerate argue Kamal Sharma and Myria Kyriacou at Bank of America Merrill Lynch.

Credit Agricole update on their latest New Zealand dollar forecasts confirming they believe the currency is overvalued.

Kangaroo bonds - Aus dollar denominated bonds issued by foreigners outside of Australia - are likely to keep the currency bid above its fundamental foundations says Charles St-Arnaud at Nomura.

Morgan Stanley are forecasting an extension of the euro / pound exchange rate rally. Hans Redeker, Head of Global FX Strategy at Morgan Stanley writes:

The British pound is unlikely to rush to post-Brexit lows, rather the move will be gradual and as such investors should position to take advantage of any bouts of strength.

Despite seeing the CAD trading on the defensive in yesterday’s session the  failure of USD CAD to close above the 100-day MAV, (1.3087) is significant, at least in the short run.

There could be some life in Sterling yet argue Goldman Sachs who see some chance of a rebound in the near-term.

The British pound is seen stabilising on currency markets at the time of writing leading many to believe that a recovery could take place.

The Australian and New Zealand dollars have rallied as risks relating to the EU referendum start to fade. But, it is not time to throw everything into a bet on an AUD and NZD recovery.

The pound / dollar exchange rate has tested 31 year lows at 1.31 but has since bounced to 1.33. However, we should expect a gradual move towards 1.30 say Credit Agricole.

Taking a look at the likely implications for the EUR/USD rate following the UK’s referendum.

The big question is how to trade sterling in the wake of the EU referendum. Silvia Ardagna at Goldman Sachs has updated clients with how she believes traders should play this market. She writes:

With the British pound putting in one of it’s strongest performance in years at the start of Referendum week some analysts are already looking at where to sell the pair.

Barclays have made selling the US dollar / Japanese Yen exchange rate pairing their ‘trade of the week’. In a note to clients the bank says:

The commodity dollar bloc is forecast to struggle this week by analyst Charles Rubenfeld at Morgan Stanley.

Barclays say they expect resistance in the 1.4670 area to cap a move towards 1.4330.

Recent developments in EUR/USD point to a renewed deterioration in fundamentals across our two most important guiding frameworks – flows and real rates.

A potential approach to the sterling-dollar exchange rate is provided by Shaun Osborne at Scotiabank who writes: The GBP is little changed on the day but retains a soft undertone after the jittery…

USDJPY remains heavy but appears to have found a near term base at the 109.00 figure.

The debate over whether the May rally in the US dollar can extend into June rages on. In the ’Yes’ camp are Morgan Stanley.

The resilience of the euro exchange rate complex continues to catch self-confessed ‘dollar bulls’ Goldman Sachs out and they have had to raise their EUR/USD forecasts higher as a result.

The Australian dollar is in focus once more following comments from RBA Governor Stevens. With the AUD under notable pressure UBS consider how far it will likely fall.

The Canadian dollar has been under pressure against the US dollar since the 3rd of May. Of late the uptrend has slowed and appears in danger of stalling.