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 10 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.
FocusEconomics 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
2015 | 2016 | 2017 | 2018 | 2019 | |
---|---|---|---|---|---|
Exchange Rate (vs USD, eop) | 1.47 | 1.23 | 1.35 | 1.28 | 1.33 |
United Kingdom Exchange Rate Chart

Source: Thomson Reuters.
United Kingdom Facts
Value | Change | Date | |
---|---|---|---|
Bond Yield | 0.83 | -3.04 % | Jan 01 |
Exchange Rate | 1.33 | -0.35 % | Jan 01 |
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Economic News
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United Kingdom: Consumer confidence steady in July at record low
July 22, 2022
Consumer confidence was unchanged at June's record low of minus 41.0 in July.
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United Kingdom: Manufacturing and services PMIs fall in July
July 22, 2022
The S&P Global/CIPS Flash Composite Purchasing Managers’ Index (PMI) fell from 53.7 in June to 52.8 in July.
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United Kingdom: Inflation comes in at series high in June
July 20, 2022
Consumer prices rose 0.80% over the previous month in June, picking up from May's 0.65% rise.
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United Kingdom: Labor market performs well in Q2
July 18, 2022
According to the ONS, in March–May the unemployment rate registered 3.8%, unchanged from the previous rolling quarter and close to its pre-pandemic level, while job vacancies eased from their previous record high in the three months to June.
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United Kingdom: Economic activity bounces back in May
July 13, 2022
GDP increased 0.5% month-on-month in seasonally-adjusted terms in May (April: -0.2% mom), beating market expectations of a flat reading.