Forecasts for the British pound dollar change all the time, affected by news events and relative sentiment towards the UK economy. In 2020, GBP exchange rates were driven almost entirely by the effects of the Coronavirus pandemic rather than any fundamentals of the British economy.
What’s in this British pound forecast summary?
Whether the pound will rise or drop in the future is a difficult question and the answer really depends on many factors. The best way to consider an exchange rate’s current relative value is to look at GBP’s history against a range of currencies and in particular against the currency you are interested in exchanging it with.
The coronavirus pandemic had replaced Brexit in the headlines for most of last year. In 2021 the pound has held or even improved its value while markets sort through the aftermath of Brexit and the improved vaccine response from the UK.
ING predict GBP/USD should breach 1.50 this year. While risks remain in place (the negative headline news around the Scottish independence referendum; the ongoing risk of tariffs should UK government choose to deviate from EU labour laws) GBP-USD Forecasts
The pound strength has hit a snag in April on concerns relating to AstraZeneca shot – which the U.K. is heavily dependent on – while the euro has strengthened on good immunisation numbers coming out of the eurozone earlier than expected. GBP-EUR Forecasts
NAB have revised upwards their Aussie to pound sterling forecasts now expecting the GBP/AUD rate to be at A$1.88 by June 2022. For 2020, it sees GBP to remain at A$1.81 at year-end. GBP-AUD Forecasts