The effects of the coronavirus pandemic plus success or failure of post Brexit negotiations will dominate GBP to AUD trends and forecasts in 2020.
British Pound Sterling to Australian dollar bank forecasts
Forecasts and predictions for the GBP/AUD exchange rate change all the time, affected by news events and relative sentiment towards the Australian and UK economies and interest rates.
The Sterling to Aussie exchange rate is even more volatile than usual because of the uncertainties around how the British economy will perform post-Brexit and the relative impact on the two economies of the Covid-19 pandemic.
NAB have revised upwards their pound sterling forecasts now expecting the GBP/USD rate to be at US$1.47 by June 2022, up from their previous forecast of US$1.39. For 2020, it sees GBP at US$1.36 by year-end, up from a predicted US$1.30.
The pound continues to show resilience despite challenging economic conditions, with direction being driven by Brexit and COVID-19 headlines. In early December, the news that the UK will be the first western country to approve a COVID-19 vaccine and optimism around the Brexit trade deal, saw GBP benefit.
However the strong Aussie dollar has lowered GBPAUD from its October 22 high of 1.84 to 1.77-78.
Australia and the United Kingdom signed a free trade agreement in June 2020, which will make whisky and wine cheaper in both countries and reduce tariffs on speciality foods, also easing travel and work restrictions.
Whether the pound will rise or drop in the future against the Aussie dollar is a difficult and the answer really depends on many factors. The best way to consider the current GBP-AUD relative value is to check the change in the exchange over a range of periods to the present day. The below table does this for periods going back 10 years.
08 Jan 2021
16 Dec 2020
17 Oct 2020
16 Jan 2020
17 Jan 2016
18 Jan 2011
GBP/AUD 10 year historic rates & change to 15-Jan-2021 : 1.7641
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