Pound Forecast

Pound Sterling has likely peaked against the Euro and is pointed lower as the Bank of England has already ended its interest rate hiking cycle in the face of softening economic data.

The Australian Dollar will this week remain at risk of further weakness in global commodity prices, however, a busy domestic calendar will also provide some potential volatility in the Pound to Australian Dollar exchange rate (GBP/AUD).

GBPAUD has bounced ahead of the weekend but a peaking of Bank of England rate hike expectations and a slowing economic data pulse could mean fresh 2023 highs are out of reach in the near term.

GBPNZD has recovered the psychologically significant 2.0 level ahead of the weekend but peaking Bank of England rate hike expectations and a slowing economic data pulse could mean fresh 2023 highs are out of reach in the near term.

The Pound's run higher is due to pause according to strategists at one of the world's largest primary brokers of foreign exchange.

70% chance the Bank of England hikes and keeps guidance unchanged, 20% chance a halt to the cycle is signalled = 90% chance the Pound falls today.

Analysts at Goldman Sachs have upgraded their tactical stance on the British Pound to "outright constructive" amidst a surprising UK economic resilience and fading central bank divergence risks.

Our bullish GBP/USD forecast is unlikely to change much.

GBPUSD hit a new one-year high at 1.2668 at the start of the week but technical analysis reveals it is looking stretched ahead of a key U.S. inflation release and Thursday's all-important Bank of England decision.

The British Pound has come under pressure against the Euro in May as investors bet Thursday's European Central Bank (ECB) interest rate decision and guidance will see it maintain its crown as the most hawkish of the major central banks.

GBP/AUD is in an uptrend with technical signals suggesting more gains are incoming.

The Euro is in demand and this will likely remain the case into the early May ECB interest rate hike.

GBP/USD is rising again as global equity markets recover with a push to 1.25 being possible if Thursday's U.S. GDP reading disappoints.

The Dollar could be about to make another leg lower that will allow the Euro and Pound to rally to fresh multi-month highs before the northern hemisphere's summer sets in, however, a lull in price action might then be expected.

Favourable April seasonality propels the Pound to its strongest valuation against a host of currencies since the start of the year, but momentum indicators look overbought and gains should fade says Bank of America.

GBP/CAD is running at levels far ahead of where it should be according to new research from a prominent Canadian bank.

The Dollar is finding itself bid in midweek trade amidst a broader turn lower in global equity markets, highlighting the currency's enduring safe-haven appeal.

The Pound to Euro exchange rate was pushed back to early February lows last week and the risk is that any attempted recovery is hampered this week by a renewed ebb of the inflation tide on Wednesday.

The Pound to Dollar exchange rate has rallied strongly in recent months and could rise further to 1.30 or so before the curtain closes on 2023.

GBP/AUD could approach 1.90 in the weeks ahead and might also find itself well-supported above roughly 1.8350 if the more favourable relative interest rate outlook is sustained.