British Pound GBP Forecasts 2021
The UK is highly exposed to gas prices and inflation and the pound has fallen 2.5% over the past six months.
BER ResearchPound Sterling Outlook
But despite this, the British pound has had a good start to the year—its best start to a year since 2018.
| GBP/USD was | Change | Period |
|---|---|---|
1.3707 12 Jan 2022 | 1.8% ▼ | 2 Weeks |
1.3800 28 Oct 2021 | 2.4% ▼ | 90 Days |
1.3740 26 Jan 2021 | 2% ▼ | 1 Year |
1.2548 27 Jan 2017 | 7.3% ▲ | 5 Years |
1.5720 29 Jan 2012 | 14.4% ▼ | 10 Years |
1.4121 31 Jan 2002 | 4.7% ▼ | 20 Years |
GBP to USD
GBP to USD at 1.3463 is near average of its 90-day range 1.3204-1.3795. GBP/USD Rates
The pound hit a 1-Year LOW in December of 1.32 against the greenback (1 USD = 0.72 GBP) but has recovered into 2022 to above 1.35.
The outlook for the pound is very uncertain due to rising inflation, slowing growth and unemployment, the combination of which could create a nightmare scenario for the Bank of England Monetary Policy Committee.
GBP to EUR
GBP to EUR at 1.1976 has risen 1.2% above average of its 90-day range 1.1641-1.2023. GBP/EUR Rates
After peaking at 1.20 the pound has fallen back against the Euro despite Covid data showing that cases in the UK were decreasing at a slower rate and hospital admissions have seemingly peaked.
Besides this, a change in risk sentiment has weighed down the pound. Uncertainty on Boris Johnson’s leadership plus tensions between Russia and the US over Ukraine have been building.
A risk-off market mood always favours the safe-haven Euro over the riskier Pound.
GBP to AUD
GBP to AUD at 1.8921 has risen 1.7% above average of its 90-day range 1.8169-1.8975. GBP/AUD Rates
Late January the GBP/AUD exchange rate has dropped from 17-week highs as investors became worried about the state of the pound sterling.
The future of the British pound is unknown as there are talks that investigations into the Downing Street parties could cost Boris Johnson his job, even though he has been trying to remove all virus restrictions and improve his poll numbers.
Both economies have recovered from recent lockdowns and virus struggles, but the Aussie dollar is poised to gain even more after the RBA’s interest rate expectations were brought forward.
GBP to INR
GBP to INR at 100.8 is just above average of its 90-day range 99.27-103.2. GBP/INR Rates
The Ukrainian crisis and the risk-off market for European energy supplies have pushed the Canadian dollar down against the Rupee.
At the end of the January the CAD/INR exchange rate was heading towards the 59 mark down from its highs around 61 in October last year.
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Disclaimer: Please note any provider recommendations, currency forecasts or any opinions of our authors should not be taken as a reference to buy or sell any financial product.