Pound Forecast

Foreign exchange analysts at a major European investment bank have lowered their forecasts for GBP/USD.

The UK economy is hard-wired to weaken its currency over the long-term, according to new analysis conducted by HSBC.

Capital Economics release dire predictions: this will be GBP's biggest crisis to date.

As the energy crisis and the lack of government continue to take bites out of the British Pound, we are taking a look at the charts to see if they will give an idea of how far the Pound will fall.

"The long term GBPUSD chart now truly looks awful" - Citi.

Timing the Dollar's unyielding rally remains one of the key questions for financial and global markets at present: there is a sense that the rally is nearing its top, but exactly where the top is and when it will finally turn is harder to divine.

Morgan Stanley updates GBP forecasts, says GBP/EUR's peak has now passed, but GBP/USD to cross 1.20 in mid-2023.

AUD is set to remain favoured against GBP over coming days.

The Pound to Dollar exchange rate came apart at the seams last week but would sustain deeper losses in the days ahead if a busy U.S. economic calendar or commentary from Federal Reserve (Fed) officials enable U.S. bond yields and the Dollar to build further on a nascent comeback. 

The Pound to Euro exchange rate unravelled to one month lows in turbulent trading for Sterling last week but had recovered its footing near an important layer of support on the charts ahead of the weekend and could now attempt to establish a firmer foothoold above roughly the 1.1757 level in the days ahead.

"It is difficult to see the light in the tunnel for GBP," says Swedbank.

"The FX market is getting tired of waiting for the BoE to actually deliver something more hawkish." - HSBC's Dominic Bunning.

50bp rate hike likely midweek, tone set by RBNZ key to NZD trade.

The Pound to Euro exchange rate has hugged its short, medium and long-term averages in recent trade and although this could continue in the days ahead, there is uncertainty over how it would respond to any up or down surprises in July’s inflation numbers due from the UK on Wednesday.

The Pound is "in trouble" says an analyst at Société Générale, who is looking for a fresh decline in the Dollar to transpire.

GBP/EUR has been under pressure for a number of days now and analysts tell us the near-term picture should see further downside, although a more protracted decline still remains unlikely.

Significant hike to GBP/EUR forecasts at Goldman Sachs, as EUR set to be weighed by energy crunch.

The Pound to Dollar exchange rate rallied to one month highs above 1.22 last week but the going could get tougher in the days ahead when it will navigate a minefield of U.S. economic data risks just as the shadow of the Bank of England (BoE) looms larger and larger over Sterling. 

The Pound to Euro exchange rate rallied further to reach three month highs last week with the aid of a handicapped single currency but could struggle to advance further in the days ahead owing to uncertainty about the outcome of Thursday’s Bank of England (BoE) interest rate decision.

"I reckon we will see the likes of GBP and EUR, currencies that have performed very poor so far this year, stage a recovery against the greenback".