Pound Forecast

Investment bank Goldmans Sachs have raised their target on a trade betting the Euro will rise further in value against the British Pound.

The Pound to Euro exchange rate has been hobbled alongside most other Sterling pairs but enters the new week couched in a pocket of important technical support levels on the charts and at a depth that creates opportunity for shortsighted dip buyers ahead of Thursday’s first-quarter GDP report.

The Pound to Euro rate climbed from near April lows last week and may attempt to extend its recovery over the coming days but it would likely take a significant 'hawkish' surprise from the Bank of England for it to avoid succumbing to the implications of any gloomier set of BoE economic forecasts this Thursday.

Analysts at ABN AMRO have said they are slashing their forecasts for the British Pound on the belief the Bank of England is nearly done with rate hikes.

The coming week promises further losses for the British Pound unless the Bank of England announces a bigger than expected interest rate rise on Thursday.

"The regime of softer growth-higher inflation outlook has persisted and remains supportive of USD strength" - JP Morgan.

If the uptrend is still alive - as per Credit Suisse's research findings - this 2022 high can yet be retested and even broken.

The Pound to Dollar rate entered the new week testing a major level of support on the charts and with only limited recovery prospects following a lengthy run of losses, while further declines remain a possibility due to an increasingly aggressive Federal Reserve (Fed) monetary policy stance. 

The Pound to Euro rate was dealt a setback last week as Sterling sustained widespread losses and the European single currency staged a short-lived rebound, although signs of a souring UK economic outlook could mean it’s set to remain subdued with limited prospects for recovery over the coming days.

The British Pound's gains against the Euro are now 'in the bag' according to new research from a major Scandinavian lender and investment bank.

"The US dollar could be close to peaking" - MUFG.

Western Union Business Solutions says GBP/USD could be poised to make a decisive break below 1.30 this week.

The Pound to Dollar exchange rate remains suppressed and at risk of further lurches below 1.30 over the coming days due to continuing strength of the U.S. Dollar and likely side effects of a possible People’s Bank of China (PBoC) effort to fend off unwanted strength in the Renminbi.

The Pound to Euro exchange rate rallied back to within arm’s reach of post-referendum highs last week but could be seen stalling and then sprawling this week if the People’s Bank of China (PBoC) comes to the aid of the European single currency in a bid to fend of unwanted strength in the Renminbi.

Pound Sterling could be on the cusp of a large surge in value against the Euro, according to an analyst at data and information provider Thomson Reuters.

The Pound to Dollar exchange rate could only make a meaningful rebound around the middle of 2022, according to new analysis.

GBP/EUR correction risk elevated, upside limited, multiple headwinds threaten short- term setback.

GBP/USD vulnerable & could slide below 1.30, risks further slippage toward 1.28 short-term.

Crédit Agricole retain a "relatively constructive" view on the British Pound for the rest of 2022, expecting UK consumers to dip into their large stockpile of savings to weather the negative impact of the country's surging inflation levels.

GBP/EUR seen around 1.1904 by year-end, but slippage to 1.1764 likely into mid-year.