The GBP to USD exchange rate has been and remains one of the most interesting currency pairs to forecast. The GBP/USD can be affected by a number of factors and this makes it a volatile exchange rate at times.
The outlook for the pound for October 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.
OFX predict the GBP could range between 1.33 – 1.38 USD in October.
04 Jan 2022
20 Oct 2021
18 Jan 2021
19 Jan 2017
21 Jan 2012
23 Jan 2002
In 2021 the market’s expectation for a rise in US inflation and thus interest rates pushed up the USD exchange rate against most currencies.
This trend is seemingly continuing into 2022 although with a slight hiccup for the greenback mid January with Mr Powell’s confirmation hearing testimony disappointing the markets about the imminence of rate hikes.
Last year the pound hit its highest level vs the US dollar since April 2018 against the US dollar on the final day of the year and has since continued higher to 3-YEAR-HIGHS around $1.40. Markets remain optimistic about GBP as the rollout of Covid-19 vaccines add to the currency’s relief rally following the Brexit trade deal.
Whether the US dollar will rise or drop in the future against the pound is a difficult question and the answer really depends on many factors. The best way to consider the current GBP-USD relative value is to check the change in the exchange over a range of periods to the present day. The above table does this for periods going back 10 years.
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.