I regularly receive input from other respected associates and colleagues ‘in the field’ - so I thought I’d share the latest currency reporting GBP/EUR/USD news from https://www.principledfinance.co.uk with you - well worth checking them out for your Forex needs amongst others! (and, for the sake of clarity I am in no way affiliated with this company!)
"The US Dollar has signalled an end to its 12 month decline, whilst the Euro has conceded its crown as the currency market’s darling as the British Pound was crowned the developed world’s best performing currency for the first quarter.
A slowdown in growth across the developed world in the opening quarter of 2018 and a sudden escalation of disputes over international trade practices are two significant factors impacting currency markets this year and will continue to pose questions about market expectations for growth and monetary policies over the rest of the year.
These factors have led to uncertainty in the markets which is why we are seeing a relative improved performance by the US Greenback during the current quarter but what matters now is how much longer these issues remain a concern.
Global GDP growth is in focus this year which some analysts are saying that we will see a mild increase and they are also predicting a gradual de-escalation of trade tensions which should see the Pound and Euro rise once again against the US Dollar.
Following economic data in Q1, the UK’s Bank of England Governor Mark Carney commented that data releases had been mixed and that this would be discussed in the MPC’s 10th May meeting. Inflation is now moderating as the effect of Sterling’s depreciation starts to wane. The MPC collectively will consider medium term inflation risks to be on the upside and that this will be signalled in the 10 May Inflation Report via its projections and a 0.25% increase in the UK Bank rate to 0.75%.
However, GBP continues to be undervalued and any Sterling strength will be supported by any Brexit progress. A number of analysts that we speak to are suggesting that a likely year-end target would be GBPUSD 1.40 and EURGBP 0.87, with the threat of a possible Labour government emerging in 2022."