The Pound-to-Dollar rate will spend much of the next year trapped near its post-referendum lows, according to the latest forecasts from Barclays, as Brexit-related uncertainty damages market confidence in the Bank of England (BoE) outlook.
The Pound-Dollar exchange rate could extend lower as the advantage still lies with the bears we believe. Ultimately, direction in this currency pair will be determined by the outcome of Tuesday's parliamentary vote on the Brexit deal.
The Dollar was volatile Thursday following a better-than-expected reading of the latest Institute for Supply Management (ISM) Non-manufacturing PMI and as global markets went into meltdown due to fears for the embryonic 'trade war' detente between the U.S. and China.
The U.S. Dollar could soon fall as much as 30% in a sell-off that could leave it looking like the bombed out Turkish Lira, according to the founder of Bridgewater Associates, the largest hedge fund in the world.
USD to be hit by falling interest rate expectations while yield curve inverts signalling possible rate peak and potential U.S. growth slowdown. Inversion signals rising hedging costs disincentivising foreign investment.