British Pound GBP Forecasts 2022
The UK is highly exposed to gas prices and inflation and the pound has been on the back-foot since mid 2021.
BER ResearchPound Sterling Outlook
The outlook for sterling remains challenging in its precarious post-Brexit economic environment.
The pound hit a multi-year Low in mid July of 1.18 against the greenback (1 USD = 0.8456 GBP) — on the bleak outlook for the UK economy and after the Federal Reserve started its long anticipated increase of interest rates.
| Date | GBP/USD | Change | Period |
|---|---|---|---|
27 Jul 2022 | 1.2162 | 0.5% ▲ | 2 Week |
12 May 2022 | 1.2204 | 0.1% ▲ | 3 Month |
10 Aug 2021 | 1.3836 | 11.7% ▼ | 1 Year |
11 Aug 2017 | 1.3012 | 6.1% ▼ | 5 Year |
12 Aug 2012 | 1.5679 | 22.1% ▼ | 10 Year |
15 Aug 2002 | 1.5345 | 20.4% ▼ | 20 Year |
GBP to USD
GBP to USD at 1.2207 is near its 90-day average 1.2228 with range 1.1826-1.2653. GBP/USD Rates
In mid-July the GBP/USD exchange rate dropped as low as the 1.18 level after the Federal Reserve raised interest rates combined with the continuing impact of the Ukraine war on commodity prices.
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
GBP to EUR at 1.1808 is just above its 90-day average 1.1752 with range 1.1519-1.1966. GBP/EUR Rates
Mid-year the GBP/EUR rate is well down to around to the 1.15-16 levels, well down from the recent high of 1.21 in March.
This is some achievement given the Euro has been under heavy pressure itself from impact on gas prices by the the war in Ukraine.
The BoE’s (UK central bank) gloomy economic forecasts has also increased pressure on Sterling.
GBP to AUD
GBP to AUD at 1.7193 is 2.0% below its 90-day average 1.7537 with range 1.7193-1.7794. 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-aussie rate has fluctuated around the 1.76 level (1 AUD = 0.56 GBP), but as we move through 2022 the prospect of more Australian interest rate rises sooner than expected could boost the Aussie dollar vs Sterling.
GBP to INR
GBP to INR at 97.21 is 1.1% above its 90-day average 96.11 with range 93.53-98.12. 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.