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GBP Trends, News and Forecasts for 2020

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Forecasts for the British pound change all the time, affected by news events such as post Brexit negotiations and the 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

With the Bank of England holding interest rates steady amid signs of a recovery in the health of the UK economy following the general election, the pound is showing strength against most currencies early in 2020.

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.

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


The success or failure of post Brexit negotations will dominate GBP trends and forecasts in 2020.  Read more

GBP/USD – 1 year trend

GBP to USD calculator Send Money Travel Money

GBPAUD exchange rate GBP to AUD Forecasts

The success or failure of post Brexit negotations will dominate GBP trends and forecasts in 2020.  Read more

GBP/AUD – 1 year trend

GBP to AUD calculator Send Money Travel Money

GBP to EUR Forecasts

The success or failure of post Brexit negotations will dominate GBP trends and forecasts in 2020.  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

Coronavirus spread fears linger – USD strong – AUD at 11 year lows

This week the US Dollar was touching three-year highs when valued against a basket of major currencies. The greenback’s traditional role as one of the safe-haven currencies is helped by a domestic economy that is largely immune to the threats of the coronavirus.

Last update: 22 Feb, 2020

Coronavirus unnerves currency markets

The strong start to the year for “risk-on” currencies is already a distant memory.

Posted: 3 Feb, 2020

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


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