British Pound Needs More U-Turns from May if its to Find its Feet vs Dollar and Euro

Analysts at a leading global investment bank have cut their forecasts for Sterling-Euro but say warnings of a fall to parity are overblown while Brexit risks are seen diminishing.

The big driver for Pound Sterling over coming weeks will firstly be the intention of the European Central Bank regarding the tapering of its stimulus programme. We have cited September 7 as being key in this regard.

The latest insight into the positioning of traders on the vast foreign exchange market place confirm sentiment towards Pound Sterling remains negative. Read more ...

The biggie for the Euro therefore comes at the September ECB meeting where forecasts from the Bank’s staff are also released.

The analyst community are playing catch-up with a falling Pound and downgrading their forecast targets following a particularly poor run for the currency.

Pound Sterling and the Dollar are seen advancing on the Euro thanks to developments concerning the European Central Bank.

"The latest labour market figures provided some signs that the tightening in the labour market may be leading to a recovery in wage growth at long last."

UK inflation has come in below economist forecasts and are suggestive that the recent increase in prices might be at a turning point.