Pound Forecast

NatWest expects the British Pound to steadily advance against the Euro and Dollar until about the third quarter of 2024 before paring gains into year-end as the Bank of England takes a knife to interest rates.

Foreign exchange strategists at investment bank Morgan Stanley say they are "most negative" on Pound Sterling in the G10 space for 2024.

Recent events have overtaken Goldman Sachs's base-case assumptions for 2024, and economists at the Wall Street bank have announced adjustments to their dollar forecasts before the new year begins.

The British Pound will fall to levels last seen against the Euro during the crisis sparked by former Prime Minister Liz Truss when she introduced her controversial budget in September 2022.

Downside momentum is building and threatens to take the Pound to New Zealand Dollar exchange rate to its lowest level since May over the coming week.

The Pound to Australian Dollar exchange rate has fallen to its lowest levels since September and appears to have entered a downtrend, which opens the door to a test of the June lows next.

The British pound enters the new week with some positive technical momentum that leaves it looking constructive against both the Euro and Dollar, but the release of inflation figures midweek could challenge recent moves.

The Australian Dollar will outperform the Pound in 2024 as Chinese growth picks up thanks to the government's stimulus efforts and the UK economy struggles, sending the GBP/AUD exchange rate below 1.90.

GBPUSD has seen a setback recently, but the uptrend is not yet invalidated.

GBPEUR faces an action-packed week of data releases and central bank decisions, which will determine whether or not it can have a crack at the 2023 highs or is relegated back to the well-trod range of recent months.

According to an investment bank analyst we follow, Pound Sterling can extend a recent advance against the Euro.

GBPUSD has had a solid run of late, rising 3.87% in November, but the first full week of the new month could be characterised by consolidation as investors await Friday's all-important U.S. jobs report.

Pound Sterling enters the new week with the benefit of two solid consecutive weekly advances against the Euro, which confers a degree of momentum in a calendar-light week.

Pound Sterling could be set for further gains against the Dollar into year-end with one market professional saying the stage looks set for a 'Santa Rally'.

Strategists at international payments firm Convera say the month of December could bring with it a break above the key 1.28 level for the Pound to Dollar exchange rate (GBPUSD).

The British Pound can extend its recent recovery against the Euro, according to a senior strategist at one of Europe's largest banks.

The Pound to Dollar exchange rate is tipped by analysts to extend its uptrend over the coming days, although a busy economic release calendar in the U.S. could trigger volatility.

The Pound to Euro exchange rate last week recorded its largest weekly gain since August and could be entering a new uptrend in a week that will be dominated by the release of Eurozone inflation data.

GBPUSD remains in a constructive technical setup that can see gains extend over the coming days which feature the Autumn Statement on Wednesday and the PMI survey for November on Thursday.

GBPEUR technical setup has broken down, key support level gives way, exposing sub-1.14.