Pound Forecast

"We think a bullish scenario for the UK (and its currency) could come as a surprise to many in 2023" - Morgan Stanley.

Foreign exchange analysts are considering the prospect of a near-term retreat in GBP/USD back below the psychologically significant 1.20 level.

Pound Sterling will lose "notable" value against the Euro says a new analysis from global investment bank MUFG, although other analysts say the UK currency can advance in value during 2023.

The Pound to Canadian Dollar exchange rate entered the new week near to nine-month highs but could be likely to consolidate its recent gains around 1.65 in the days ahead unless the Loonie finds reason for further underperformance in Canada's latest inflation and economic growth numbers.

The Pound to Dollar exchange rate was toppled at six-month highs last week as deteriorating economic data and hawkish central banks drove a rout in risky assets but Sterling could benefit this week if the forthcoming holiday period leads the speculative market to lighten up on its own risk for a while. 

The Pound to Euro exchange rate fell heavily last week and still faces numerous medium-term headwinds but could be likely to find its feet around 1.1450 over the coming days if risk reduction ahead of the forthcoming holiday period leads the speculative market to cut back bets against Sterling. 

The Pound to Euro exchange rate was trading at substantially reduced levels ahead of the weekend but could have further to fall if the TD Securities strategy team is on the money when looking for Sterling to slip lower to around 1.13 in the fortnight or so to come.

AUD forecast to strengthen in 2023 by NAB.

The Pound to Dollar exchange rate has remained buoyant near nine month highs in recent trade but it could be volatile in the days ahead when a pending deluge of important UK and U.S. economic data points will set the stage for the latest interest rate decisions from the Federal Reserve (Fed) and Bank of England (BoE).

Citi says the British Pound will retreat towards 2022's lows over the coming months.

Technicals look for more GBP/USD upside.

EUR/GBP a sell in 2023 says Danske.

Foreign exchange strategists at RBC Capital say the Euro is to rise against the British Pound in 2023 owing to their pessimistic view on the UK economic outlook.

GBP/NZD has eased back of late amidst clear NZD outperformance.

GBP/AUD sits poised at a key area of resistance that, if broken, could usher in new highs, but failure to breach could ultimately result in a pullback over the course of the coming week.

The Pound to Dollar exchange rate reached multi-month highs last week after Federal Reserve (Fed) and Chinese health officials appeared to inspire in investors an almost Pavlovian appetite for chasing risky assets but it remains to be seen if the rally can survive this week's U.S. economic data offering.

The Pound to Euro exchange rate's multi-month recovery was frustrated last week as Sterling became caught in a dense pocket of technical resistance, which could continue to obstruct the path higher in the days ahead and what is set to be a quiet week for UK and European economic calendars.

GBP is near multi-decade lows and the risk of a major decline is limited, says NatWest Markets as it assesses the currency's prospects for 2023.

The British Pound ends November on a solid footing against the Dollar and Euro but there is a distinct uncertainty amongst analysts as to how the coming month of December will play out.

GBP/NZD starts the new week higher amidst a selloff Asian and Australian currencies linked to the weekend developments in China, but the prospect of a material advance in the pair remains limited.