The Independent News and Data Provider
The Pound-to-Swiss Franc exchange ratewas lower on Wednesday but remained the best performer of the Sterling currency complex for 2021 and has been increasingly tipped for further gains in the months ahead including by Goldman Sachs, Barclays Capital, BofA Global Researchand Natwest Markets.
The Euro-Dollar rate has been range-trading since January's near-unravelling below the landmark 1.20 level but could break in either direction over the coming months, according to BofA Global Research and ING, whose forecasts tell a story of competing scenarios for 2021 outcomes from here.
Australia's Dollar was a laggard among major currencies on Friday as risk-aversion prevailed among investors ahead of the weekend but the antipodean unit remains undervalued and robust prospects for the iron ore market have continued to limit the currency's downside potential.
The Canadian Dollar was on its back foot Friday having ceded ground to the U.S. Dollar, Pound and a small majority of its other major rivals but forecasts from BofA Global Research suggest it has scope for one last huurah in the months ahead before fundamental forces demand an adjustment lower for the Loonie.
The Canadian Dollar continued its trend of underperformance, lagging major rivals on Thursday as the curtain began to close on 2020 and ahead of a year in which Bank of Canada (BoC) concerns about export competitiveness could feature prominently as a driver of the currency.
The Pound-to-Dollar rate was carried across another key rubicon in its ninth consecutive gain on Wednesday as an exodus from the greenback resumed, but BofA Global Research says adverse seasonal trends and the trajectory of Brexit talks means fresh underperformance is just around the corner.
The Pound-to-Canadian Dollar rate unravelled further on Tuesday after poor May GDP data stoked concern for the UK's recovery prospects, although some forecasters are warning of a further poor performance ahead.
The Pound-to-Dollar rate defied gravity Thursday but is at risk of slipping lower through volatile summer months as coronavirus, geopolitical tensions and Brexit compete with the global recovery narrative for investors' attention.
The Euro was in recovery mode in the final session of the week and could have scope to advance further in the months ahead, according to upgraded forecasts from BMO Capital Marketsand Nomura, although the bulk of the upside may already have been seen.
The Pound-to-Canadian Dollar rate was treading water on Friday but has this week established a foothold around the midpoint of its recent trading ranges, leaving perched atop the 1.70 level and positioned for a modest recovery in the event that risk appetite continues to soften.
The Pound could rise by 10% against the Dollar and Euro over the coming months as the Brexit saga is brought to an end and the Bank of Englnad becomes able to lift its interest rate again, according to analysts at Bank of America Merril Lynch, who've told clients to buy the British currency.
Europe's single currency is on course for large gains this year, according to analysts at Bank of America and Morgan Stanley, who say they're anticipating a 2019 demise of the U.S. Dollar rally that has the kept the euro on its back foot for the last 12 months.
Fears that the world economy is on the brink of slipping into recession purely because the growth cycle is reaching fatigue are misplaced.
The EUR/USD pair has formed a triangle pattern after meandering sideways for most of the last month; these patterns, though boring to watch, actually forewarn of steep volatility on the horizon when they finally break out.
Low volumes in the currency market owing to the ongoing football World Cup suggest the market may be complacent on trade war risks say Bank of America Merrill Lynch.
The Australian Dollar is close to bottoming out and may soon recover against many of its international rivals, according to strategists at Bank of America Merrill Lynch, although the investment bank's latest forecasts suggest the Pound-to-Australian-Dollar rate can still rise as much as 5% during the rest of 2018.
Pound Sterling is still trading at a steep discount to "fair value", according to strategists at Bank of America Merrill Lynch, who argue that improving UK economic fundamentals mean the British currency is well positioned for a rebound to higher levels over the longer term.
One of the world's largest investment banks has confirmed a trade recommendation that sought to benefit from a rise in the Pound has gone wrong and near-term weakness should be expected. However, longer-term the Pound is still expected to trek higher.
A notably pro-Sterling call has been issued by one of the world's largest dealers in foreign exchange as we approach a new month.
One of London's most noted foreign exchange analysts believes Pound Sterling could reach an 18 month high against the Euro by the end of 2018.
Page 1 of 3