GBP/USD Exchange Rates

Stay informed on the GBP/USD currency pair right here. We provide clear updates and insights, helping you keep track of these two major currencies with ease.

Exchange Rates

£
1.00 British Pound =1.15 Euros
1.00 BGR =1.15300946 EUR1.00 EUR =0.85300946 BGR
Our currence converter displays mid-market exchange rates. You won’t receive these rates when making transfers.
Last updated: Jan 1, 2024

About the Pound Sterling

  • The British Pound Sterling, commonly known simply as the pound, was introduced in the 8th century.
  • The British Pound Sterling is used in the United Kingdom, Gibraltar, the South Sandwich Islands, the Isle of Man, South Georgia, and the British Antarctic Territory.
  • It is considered one of the world’s major currencies, historically being the oldest currency still in use today.
  • The symbol for the British Pound Sterling is £ (GBP).
  • It is regulated by the Bank of England.

GBP/USD History

2023

In 2023, the GBP/USD average exchange rate was 1.2438.
The highest rate point of the year was on July 14th when the rate was 1.3142.
The lowest rate point of the year was on March 8th when the rate was 1.1808.

2010-2023

Between 2010 and 2023, the GBP/USD average exchange rate was 1.4196.
The highest rate in this period was on July 15, 2014, when the rate was 1.7187.
The lowest rate in this period was on January 27, 2012, when the rate was 0.6374.

GBP/USD Predictions and Expectations

As we look forward to 2024, 2025, and beyond, the GBP/USD exchange rate finds itself at a crossroads, influenced by a myriad of economic, geopolitical, and fiscal policy factors. This article draws from historical data and insights from several authoritative sources to forecast the trajectory of this currency pair.

2024 Outlook: A Year of Economic Realignment

The latter part of 2023 set a turbulent stage for the GBP/USD exchange rate, with the UK grappling with economic challenges, including a contraction in GDP and the looming threat of a technical recession. High costs and interest rates have strained the UK economy, with investment declines marking a worrying trend. However, the forecast for 2024 shows a silver lining. As inflation begins to subside, real incomes in the UK are expected to recover, potentially leading to a decrease in interest rates from August onwards, if not sooner. This anticipated shift is expected to ease financial conditions, hinting at a nascent recovery, particularly in the housing market​.

Banks and financial institutions have varied views on the outlook. While Danske Bank and HSBC point to an economic weakening, ANZ and Investec hold a cautiously optimistic stance, expecting resilience and a robust GBP in 2024. Capital Economics, however, projects a potential dip for the pound to $1.20 by year-end, reflecting a more pessimistic view influenced by fading price pressures and a potential ongoing recession​

GBP USD exchange rate for 2024

The Influence of Central Banks

The policy decisions of the Bank of England (BoE) and the Federal Reserve will be pivotal. With inflation rates dropping more sharply than anticipated, early rate cuts are on the horizon for 2024, influenced by the health of the economy and market expectations. The BoE’s cautious approach towards rate cuts, contrasting with the Fed’s aggressive stance, will play a crucial role in shaping the GBP/USD exchange rate. The market anticipates at least four rate cuts by the BoE in 2024, bringing rates to just above 4.00%, with the first cut possibly as early as May​

2025 and Beyond: Long-term Perspectives

Looking further ahead, HSBC’s long-term currency predictions suggest a gradual strengthening of the GBP against the USD, with a forecasted rate of 1.27 by 2029. This projection is grounded in the anticipation of a weaker global economy and the need for a downward adjustment in the fair-value estimates for major currencies, including the GBP​.

Analysts highlight several factors that could influence the long-term trajectory of the GBP/USD rate. Among these, the performance of the US economy, the pace and extent of Federal Reserve policy adjustments, and global economic recovery efforts are paramount. A shift in Fed expectations, triggered by inflation trends and policy meetings, has already influenced market sentiment, potentially leading to a softer USD as rate cuts are anticipated​

GBP USD long-term exchange rate forecast from 2025 to 2029

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