Forex Market Analysis: Key Currency Pair Projections and Economic Forecasts

Scalping: Scalping is a trading style that focuses on profiting from tiny price movements. In this strategy, traders look for small profits in a very short time frame, and a 3 PIP move can be a target. This type of trading requires precise execution and quick decision-making.
Day Trading: Day trading is another strategy that involves monitoring short-term price movements, where traders seek to profit from minor fluctuations. Traders may use the 3 PIP target to enter or exit positions based on short-term trends.

Pound to Euro Insights

Amid fluctuations in the financial markets, the Pound to Euro (GBP/EUR) exchange rate has demonstrated volatility, struggling to maintain a position above the 1.16 mark, with recent trades hovering around 1.1560. Despite the FTSE 100 index reaching new record highs, the Pound has not capitalized on these gains, indicating a disconnect between equity market achievements and currency strength. Analysts at Danske Bank project that the underlying economic vulnerabilities in the UK may lead to a depreciation in the Pound, predicting a potential decline to 1.1235 in the next 6-12 months. This forecast suggests cautious trading, with an eye on macroeconomic indicators that could influence the Pound's trajectory.

Euro to Dollar Forecast

The Euro to Dollar (EUR/USD) exchange rate has seen a robust rally following the unexpectedly strong US jobs report in August. However, despite this positive momentum, the pair has not breached the 45-month high of 1.18 seen in early July. Financial institution Westpac maintains a conservative outlook for the Dollar, anticipating only limited losses and setting a target of 1.20 for the EUR/USD exchange rate by the end of 2026. This forecast points to a period of relative stability with potential slight strengthening of the Euro against the Dollar, influenced by economic developments and policy decisions from central banks on both sides of the Atlantic.