In the latest pound to dollar forecast we look at the current outlook for the GBP/USD rate. The US dollar made further in roads against the pound in a volatile day of trading yesterday with over 1% movement on the pound to dollar rate. Having looked so comfortable above 1.30 and hitting 1.3226 in the last month on Brexit optimism, it was not a major surprise to see Brexit uncertainties weaken the pound.
Sterling has lost ground over the fresh likelihood of a no-deal scenario and the increased chances of a second referendum. With the US dollar performing well owing to the strong economic data and Donald Trump’s overall solid performance in the mid-term elections, GBP/USD rates could easily remain below 1.30.
Pound to dollar forecast: When is the best time to buy US dollars?
Historic performance on the pound to dollar pair in 2018 states any position below 1.30 is probably a good time to sell whilst above is a good time to buy US dollars with pounds. With an important series of economic releases this week and a whirlwind of political developments on the cards, GBP/USD levels look set to remain volatile.
Tomorrow is important with the latest UK Unemployment figures before Wednesday sees both UK and US Inflation. Thursday is also important with the release of the latest UK and US Retail Sales figures due.
All of these releases are vital and likely to create volatility on the pound to dollar rate as investors try to make sense of the recent economic developments against the political backdrops.
Many reports suggest a Brexit deal is now increasingly likely in the coming week but Mrs May must get this all through her cabinet. Sterling should rise on any positive news, back over 1.30 I would expect. Whilst any increasing signs of either a second vote or a no-deal would see sterling on the back foot.
If you are looking to buy or sell US dollars for sterling the week ahead is vital, both in terms of the economic and political news. Trying to predict accurately what is next will be very difficult as it effectively relies on predicting the outcome on Brexit, even the politicians do not know what is going to happen.
Thank you for reading and I welcome any comments or questions on the week ahead on GBP/USD exchange rates. If you would like to discuss anything you have read here or would like to look at options for a currency transfer, please feel free to contact me directly using the form below: