Exchange Rate in United Kingdom
United Kingdom - Exchange Rate
Pound set to continue rollercoaster ride
The British pound (GBP) has shown high volatility lately amid political turmoil regarding Brexit and debate over when to initiate formal negotiations with the European Union. In the last month, the currency has hovered around USD 1.24 per GBP (EUR 1.14 per GBP), over 15% weaker than on the day of the referendum when it traded at 1.49 against the greenback (EUR 1.31 per GBP). The currency has been under pressure since Prime Minister Theresa May’s announcement that the UK would trigger Article 50 of the Lisbon Treaty before March of next year. The possibility that the government is heading for a “hard” Brexit—no tariff-free access to the European market and restrictions on labor movement—is raising concerns among investors.
In November, the pound has had some short-lived rallies. On 3 November, the currency surged more than 1.0% and traded at USD 1.24 per GBP (EUR 1.12 per GBP) following the verdict of the High Court that the UK government needs parliamentary approval to officially start the country’s exit from the Union. The majority of Members of Parliament do not support Brexit, and the decision of the High Court could delay Brexit or “soften” the exit. Moreover, the pound benefited from the Bank of England’s decision on the same day to keep rates unchanged on the back of the better-than-expected performance of the economy after the referendum vote.
Following the victory of Donald Trump in the U.S presidential elections, the pound surged 1.2% on 11 November and traded at 1.26 against the greenback (EUR 1.15 per GBP) since market concern shifted from the pound to the euro on fears of an increasing wave of populism across Europe. Looking forward, analysts expect further volatility of the sterling as the government will appeal the verdict to the UK’s Supreme Court on 5 December. The pound will experience more pressure should that decision rule in favor of the government.
Met the why particular Consensus Forecast panelists expect the pound to end 2016 at 1.23 GBP per USD. In 2017, the panel sees the currency trading at 1.24 GBP per USD.
United Kingdom - Exchange Rate Data
|Exchange Rate (vs USD)||1.66||1.56||1.47||1.23||1.35|
5 years of economic forecasts for more than 30 economic indicators.
United Kingdom Exchange Rate Chart
Source: Thomson Reuters.
United Kingdom Facts
|Bond Yield||1.27||-3.04 %||Jul 13|
|Exchange Rate||1.32||-0.35 %||Jul 13|
|Stock Market||7,662||-0.26 %||Jul 13|
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July 11, 2018
Industrial production fell 0.4% in May over the prior month according to the Office for National Statistics, up slightly from April’s revised 1.0% decline (previously reported: -0.8% month-on-month).
July 11, 2018
According to new monthly GDP data released by the Office for National Statistics (ONS), the economy expanded 0.3% in May over the prior month in seasonally-adjusted terms.
July 4, 2018
In June, growth in the UK services sector was the fastest since October last year, with the IHS Markit/CIPS UK services Purchasing Managers’ Index (PMI) rising to 55.1 from 54.0 in May.
June 28, 2018
According to the Nationwide Building Society (NBS), house prices in the United Kingdom rose 0.5% in June compared to the previous month in seasonally adjusted terms, contrasting May’s 0.2% decline.
United Kingdom: BoE stays put in June, although consensus within the Committee is slowly shifting towards a rate hike
June 21, 2018
At its meeting ending on 20 June, the Monetary Policy Committee (MPC) of the Bank of England (BoE) voted to leave the Bank Rate unchanged at 0.50%.