The UK is highly exposed to gas prices and inflation and the pound has been on the back-foot since the Russian invasion of Ukraine.
BER Research The pound hit an all-time low (since decimalization in 1971) in late September of 1.03 against the greenback (1 USD = 0.97 GBP) — reacting to the controversial tax-cutting policies from the new chancellor.
The outlook for sterling against most currencies over the winter remains extremely challenging in its precarious post-Brexit/Ukraine war economic environment.
| Date | GBP/USD | Change | Period |
|---|---|---|---|
14 Nov 2022 | 1.1752 | 1.7% ▲ | 2 Week |
30 Aug 2022 | 1.1659 | 2.5% ▲ | 3 Month |
28 Nov 2021 | 1.3341 | 10.4% ▼ | 1 Year |
29 Nov 2017 | 1.3417 | 10.9% ▼ | 5 Year |
30 Nov 2012 | 1.6021 | 25.4% ▼ | 10 Year |
03 Dec 2002 | 1.5646 | 23.6% ▼ | 20 Year |
GBP to USD at 1.2013 is 4.8% above its 90-day average 1.1466 with range 1.0680-1.2116. GBP/USD Rates
GBPUSD is down around 15 percent this year and hit an all-time low (since decimalisation in 1971) in late September of 1.03 (1 USD = 0.97 GBP) — reacting to the controversial tax-cutting policies from the previous (new) chancellor.
The Bank of England has joined the global fight against inflation, but has raised rates by less than the US Federal Reserve.
So it seems the BoE’s gloomy economic forecasts has increased pressure on Sterling.
GBP to EUR at 1.1568 is just 0.8% above its 90-day average 1.1475 with range 1.1114-1.1654. GBP/EUR Rates
In October, the GBP/EUR rate is still well down from the 1.20 levels, seen at the start of the year, to the 1.13-15 levels (1 EUR = 0.88 GBP).
This is some achievement given the Euro itself has been under heavy pressure itself from impact on gas prices by the war in Ukraine.
The BoE’s (UK central bank) gloomy economic forecasts has also increased pressure on Sterling.
GBP to AUD at 1.7821 is 1.9% above its 90-day average 1.7486 with range 1.6543-1.8118. GBP/AUD Rates
In the first quarter the GBP/AUD exchange rate dropped on the impact of the Ukraine situation on commodity prices — this was good for AUD and bad for GBP.
Since then the pound to Aussie rate has fluctuated around the 1.76 level (1 AUD = 0.56 GBP), except for a drop to 1.60 when the market rejected the new UK chancellors controversial tax policies.
GBP to INR at 98.12 is 5.2% above its 90-day average 93.26 with range 87.16-98.95. GBP/INR Rates
The Ukrainian crisis and the impact on energy prices have pushed the Canadian dollar up & down this year against the Rupee.
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.