Pound to Dollar Outlook: GBPUSD Interbank Rates Reach 1-Month Highs

Pound to Euro Starts the Week off Steady

The pound to US dollar exchange rate has risen to the highest it has been in a month, as continued weakness for the US dollar and continued optimism for sterling persists. Just this afternoon however, we have traded slightly lower below these month highs, as fresh concerns over the global economy arose.

As a safe haven currency, in times of economic uncertainty the US dollar will rise in value and this is exactly what has happened today. A report released by the IMF (International Monetary Fund) has predicted the worst slowdown since the Great Depression in the 1920’s.

GBPUSD levels are currently 1.2504 on the interbank rate, having risen as high as 1.2624 today. This is still good news for US dollar buyers when you consider the lows of 1.1435 reached on the 19th March, just over a month ago.

We are however still below the highs of 1.3205 reached earlier this year. The US dollar has been rising and falling on expectations of the economic impact of the COVID-19 pandemic on the global economy. With us still being very much in an early stage of the economic impact, there is plenty of news to come out in the future detailing our current economic situation. This is because economic news is released the following months or quarters, once the providers of such information have had time to compile it. However, from all the more immediate indicators and releases, there are plenty of causes for concern.

Will GBPUSD Drop Back Below 1.20?

For clients looking to sell US dollars for pounds, this is a common question I am being asked. Many clients might feel they missed the boat when the pound to US dollar rate dropped to levels below 1.20 back in March.

To help you trade at such levels again we can constantly monitor the rates for you with a ‘Limit’ order, which can guarantee your exchange rate if the desired rate is hit. With the market having moved quite sharply outside of usual behaviour at this time, it just shows how important preparation is in achieving a target rate of exchange.

If you are monitoring GBPUSD levels and wish for assistance in the timing and planning of any trades, whether it be selling US dollars for pounds, or buying US dollars with pounds, we would be most interested to discuss strategies to help maximise your position.If you would like to discuss the markets in more detail, please do contact me directly using the from below.