Best rates for buying USD, two and a half year high. Close to a year high against the Euro again. (Ben Amrany)

Pound to Dollar Forecast: GBPUSD Continues Upward Trend but for How Long?
Ben Amrany
Ben Amrany

Sterling exchange rates have been on a favourable increase over the last 24 hours. We have seen the pound spike to nearly a two and a half year high against the USD (1.6670) and move back close to the year high against the Euro (1.2225)

The upbeat comments by the Governor of the Bank of England Mark Carney has really boosted the pound which was fairly flat before yesterday’s inflation report. His upbeat economic forecast brought forward expectations on when interest rates may rise and it is looking like 2015 will now be the year. Why inflation is falling and other economic conditions are improving he can probably look to hold off for a year or so. The pound spiked on the back of getting some forward guidance but it may be a while off until we see real strength. Having said this if the markets will be expecting a rate hike and factor it in to a strengthening pound the impact on sterling may not be as great at the time. We will have to wait and see where the pound is at that time.

Looking at current events there is no economic data out of the UK tomorrow. Instead all eyes will be focusing on events in Europe as there are many releases. The main ones to keep an eye out for if you are buying or selling Euros will be the key GDP figures for Germany, France, Spain & Italy followed by GDP for the whole of the region. This is one of the biggest releases in a month and shows how the Euro zone economy is growing. We are expecting to see slight growth but should it come out as expected or worse then I feel the pound can take advantage of the vulnerable Euro. Already in the last 24 hours the pound was up about 1.5% which on a £200K purchase would have achieved you around 3500 Euros more than before the inflation report.

As we head towards next week we will have all the key inflation figures for the UK. If inflation continues to fall I would expect to see the pound dip slightly from this week’s highs and if you can catch your exchange why the pound is above 1.21 against the Euro and 1.64 against the US Dollar you will be doing well in my opinion.

If you do need to buy or sell any of the majors feel free to contact me to discuss your requirement and I will introduce myself and the service we provide more formally to explain the proactive service we will offer to help you judge when to do your exchange and to help you make a saving over your high street bank.

If you are in the situation needing to move money internationally and looking for the best price – please feel free to contact the author – Ben Amrany – via the telephone number at the top of the page or via email at