Positive investment sentiment aids the Pound. USD also under far less pressure now..
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| GBP is about to snap the 2-week selloff against the EUR.
Having fallen 1.5% in the last couple of weeks, Sterling is about to close 0.5% higher this week versus the Euro. Geopolitical de-escalation and now welcoming US tariff news means as a beta currency, the Pound (and UK assets) is being bought up again by investors.
GBP is up nearly 2% versus the USD this week, but we expect to see a pullback once official trade announcements are made. The Dollar has fallen 11% versus GBP & 13% against the Euro this year.
The S&P 500 (a marker of GBP performance) & the Nasdaq (good indicator of economic growth) are close to record highs after collapsing in and around "Liberation Day".
This clearly suggests investor optimism which is good news for the Pound.
Monday sees both the end of the month and quarter so we could witness some volatility as trades close and open new positions on the market.
Friday forecast unveiling for Q2 | Every Friday in the last month of a quarter, we will publish the forecasts of 5 top investment banks (that are trading the highest volume of currency) and myself on where we all expect to see GBP v EUR to finish that quarter.
These opinions are gathered generally 2-weeks before a new quarter starts and are shared with any of our customers and prospective customers that request them.
They offer facts from the past and research on what to expect in the future to give customers an idea on what could happen in the months ahead.
If you would like to receive the next quarter's report, please contact your account manager or simply reply back to this email.
Danske Bank - £-€1.22 (£-€1.22 in Q1) Barclays Bank - £-€1.20 (£-€1.22 in Q1) HSBC - £-€1.20 (£-€1.22 in Q1) Santander - £-€1.19 (£-€1.20 in Q1) JP Morgan - £-€1.18 (£-€1.16 in Q1) Dan Waterman - £-€1.17 (£-€1.18 in Q1) |
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