The British pound eased below $1.35 during the fourth week of January, moving further away from an over two-month high of $1.37485 hit on January 13th, as investors digested PMI data showing Britain's private sector growth slowed to an 11-month low and as demand for the dollar was supported by expectations the Federal Reserve will be announcing this week a March interest-rate hike to combat inflation. At the same time, rising political uncertainty hurt sterling as UK Prime Minister Boris Johnson faces a crunch week for his leadership as he braces for the outcome of an investigation into Downing Street parties during the 2020 lockdown. Elsewhere, investors see a high chance that the Bank of England will raise rates again next week, after data showed last week the UK consumer inflation rose more than expected to 5.4% in December, its highest since March 1992, and the core index, which excludes volatile items, rose by a record 4.2%.
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 January of 2022.
The British Pound is expected to trade at 1.35 by the end of this quarter, according to Trading Economics global macro models and analysts expectations. Looking forward, we estimate it to trade at 1.33 in 12 months time.