The Pound-to-Dollar rate is set to beging trading around 1.3214 Sunday after falling just more than half a percent in previous week, although technical studies of the charts suggest the exchange rate is likely to rise over the coming days.
The Dollar was hobbled by broad-based losses on Wednesday after the Federal Reserve (Fed) suggested strongly that it will not raise U.S. interest rates at all this year, vindicating the market for having taken a dour view of the policy outlook back in January.
The Pound ceded ground to the Dollar Wednesday but technical analysts say the charts are pointing to further gains ahead just as inflation pressures are believed to be building in the economy again, leading economists to warn that Bank of England (BoE) interest rate hikes are on the way.
The Pound-to-Dollar rate is to begin trading around 1.3285 Sunday after rising more than 2.0% in the previous week, although the exchange rate still has further to climb over the coming days, according to technical studies of charts.
The Pound was treading water against the Dollar Friday after managing to cling to much of its recent gain during the overnight session but investors are best served by steering well clear of the British currency for the time being, according to three influential investment banks.
The Pound-to-Dollar exchange rate has risen by close to five percent this year already but Sterling still has further to run, according to strategists at Morgan Stanley, who have told clients they should bet on a further 3% increase during the coming weeks.
The Dollar softened even further on Wednesday after core-durable goods orders data surprised on the downside for the month of January and as unease over the UK's departure from the European Union ebbed further from previously elevated levels.