The euro and the pound fell against the dollar (GBP/USD) as investors are confident that interest rates in Europe will stay low for longer. The dollar’s rise came a day after currency markets ignored a high US inflation rate that is likely to be temporary. The pound/dollar exchange rate declined by more than one percent at the time, contrary to the expectations of a bullish trend voiced by some analytics. Our own forecast for pound to dollar rate is 1.4 USD per GBP. After that, the GBP regained some losses.
At the end of the week, almost all major currencies showed a decline. The largest decline against the US dollar was shown by the New Zealand dollar (-1.01%). The Canadian dollar (-0.74%), the Euro (-0.46%), the Australian dollar (-0.41%), the British pound (-0.24%) and the Japanese yen (-0.17%) recorded a smaller drop. Only the Swiss franc rose (+0.06%).