The British pound traded slightly higher at $1.297 after Bank of England policymaker Gertjan Vlieghe warned that downside risks to the economic outlook are starting to materialize and that the outlook for monetary policy is skewed towards adding further stimulus, with forecasts pointing to a longer period of labor market slack with weak inflationary pressure. Vlieghe also said that the central bank has been discussing the possibility of further interest rate cuts in the future, and that the risk that negative rates end up being counterproductive to the aims of monetary policy is low. Meanwhile, uncertainty surrounding Brexit negotiations continued, as chief negotiator David Frost said on Monday there was no point in resume trade talks with the EU until there is a change in Brussel's approach.
Historically, the British Pound reached an all time high of 2.86 in December of 1957. British Pound - data, forecasts, historical chart - was last updated on October of 2020.
The British Pound is expected to trade at 1.29 by the end of this quarter, according to Trading Economics global macro models and analysts expectations. Looking forward, we estimate it to trade at 1.26 in 12 months time.