Foreign exchange analysts at Danske see scope for the Pound to Dollar exchange rate (GBP/USD) to hold steady in the very short term, but expects superior US fundamentals will take a toll over the medium term with a slide to 1.16 on a 12-month view. GBP/USD dipped to 5-month lows just above 1.2400 this week as dollar strength dominated before a recovery to 1.2460 following the recent UK inflation data. On a near-term view, Danske Bank considers that the US economy is liable to deteriorate, and it still sees scope for the Federal Reserve to cut interest rates in June. It also sees scope for three interest rate cuts for ... (full story)