Latest Exchange Rate Forecasts

Short term exchange rate forecast for the pound vs US dollar from UKForex; 1.59 forms upper target

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Published on Monday, 20 February 2012 12:11

Written by Will Peters

The pound US dollar exchange rate is 0.24% higher on the day at 1.5865. A morning intra-day foreign exchange forecast note from foreign exchange services firm UKForex have forecast the GBP/USD to trade a range between 1.5780 and 1.5920.

"It’s a public holiday in the US today and we have no economic releases from the UK, but it could still be a choppy session as Euro group ministers continue to try to flesh out an agreement regarding the Greek aid package. GBP/USD opens this morning at 1.5850," says a morning exchange rate note from UKForex. 

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The USD had a mixed day on Friday, falling against most of its European area counterparts but performing well against the commodity dollar bloc.

The pound sterling in particular performed well against the US dollar (Currency:USD), with GBP/USD rallying to a high of 1.5862 on the back of a very strong UK retail sales print for January, which came in at 1.2% m/m versus expectations of -0.3% m/m.

This much better than expected figure is obviously a plus for the UK economy, with the stronger consumer consumption likely to reduce the need for further asset purchases by the Bank of England.

UKForex say:

"Profit taking took cable back down to the 1.58 handle where it consolidated for the rest of the session.

"Sentiment towards the pound was also better on the day as investors became more optimistic that an agreement on the Greek bailout was imminent, as European officials continued to maintain that a deal was very close."