Previously, ING analysts have forecast GBP/USD would trade above 1.30 on a 12-month view but have shifted their forecasts this month, primarily due to a forced change in Federal Reserve interest rate expectations. The Pound to Dollar (GBP/USD) exchange rate has hit 5-month lows just above 1.2400 this week before a recovery to 1.2475. Much of the impact may have already been seen, limiting Pound losses from current levels. It notes that the last three US inflation readings have been stronger than expected which will inevitably have an impact on Fed thinking. ING now expects three Fed rate cuts at most this year and ... (full story)