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British pound GBP forecasts for 2020

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Forecasts for the British pound change all the time, affected by news events such as Brexit and relative sentiment towards the UK economy. This continually updated article reviews the latest forecasts from banks and FX experts as well as news and recent movements of GBP in the currency markets.

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British pound forecast

British pound in the markets

In the post UK election euphoria the pound rose to over 1.33 USD and 1.20 EUR but has since dropped back over the uncertainty of what sort of trade deal the UK can realistically negotiate with Europe over the next 11 months.

GBP has given up all of those election result gains as Mr Johnson pledged to outlaw any extension to the UK’s post-Brexit transition period at the end of next year. It appears the Brexit volatility in the pound is set to continue for the foreseable future.

For GBP forecasts and predictions read our British Pound Forecasts summary.

GBP cross rate forecasts

The following sections show a summary of bank forecasts for popular GBP cross rates that we have reviewed, you can view each forecast article for more details.

GBP to USD Forecasts


Brexit continues to dominate GBP markets and forecasts, with "no deal" likely to induce exchange rates near $1.10; a deal will bring rates closer to $1.50.  Read more

GBP/USD – 1 year trend

GBP to USD calculator Send Money Travel Money

GBPAUD exchange rate GBP to AUD Forecasts

In early August the US labels China a "currency manipulator" pushing the GBP/AUD rate back up through the 1.8 level. Brexit and 2019's RBA policy shift are the dominating themes for GBP/AUD. A "no deal" Brexit is likely to induce exchange rates near A$1.60, HSBC has said.  Read more

GBP/AUD – 1 year trend

GBP to AUD calculator Send Money Travel Money

GBP to EUR Forecasts

Brexit is the dominating factor for GBP/EUR, with "no deal" likely to induce exchange rates below parity (€1.0) for the first time ever.  Read more

GBP/EUR – 1 year trend

GBP to EUR calculator Send Money Travel Money

GBP General Info and Influences

The British pound (ISO: GBP) is one base unit of sterling – that being the name of Britain's currency – and is subdivided into 100 pence.

Contributing to around 13% of all foreign exchange deals, the pound, or sterling, is the world’s fourth most traded currency.

Reputedly, sterling is 1200 years old. It is said that Anglo-Saxon traders used silver pennies in the eighth century called ‘sterlings’, 240 of which would equal one pound in weight.

Due to its membership of the European Union, Britain could have adopted the euro as its currency upon its introduction in 1999, however the British government opted against this because it wanted to retain monetary policy independence and because it perceived euro adoption as offering only small economic benefits.

In recent years, the most significant event to affect sterling’s valuation was the UK’s vote to leave the European Union on June 24th 2016 – a day on which the exchange rate for GBP/USD fell by as much as 11%.

In the past two decades, the pound’s highest valuation against the dollar occurred in November 2007 when GBP/USD reached 2.1161. Its lowest value came in October 2016, three-and-a-half months after the historic ‘Brexit’ vote, when GBP/USD reached 1.1905.

Currency Exchange Locations

We have put together these guides to the major city CBDs where you will often find the best deals for buying foreign cash in the UK.

Recent GBP news articles

New Year Optimism Retreats on US/Iran Tension

The threat of a proxy war between the US and Iran in Iraq has pared back some of the recent gains of “risk-on” currencies.

Last update: 8 Jan, 2020

AUD/GBP Between a Rock and a Hard Place – USD Strength

AUD/GBP versus AUD/USD and GBP/USD

Both the Australian dollar and British pound sterling have had a hard time of late caught between the rock of the China/US trade war and the Brexit hard place.

Last update: 7 Jan, 2020

Australia Cuts Interest Rates to Record Low

RBA Australian dollar AUD currency news and forecasts

The RBA has cut Australian interest rates to a record low of 1 percent in an effort to boost inflation. The Australian dollar is slightly stronger following the widely expected decision but is expected to lose 5–7 percent of its value before year-end.

Last update: 7 Jan, 2020


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