Currencies are easily influenced by every small event, political, economic or social. They can grow in value or decrease. The British pound forecast has been very unpredictable during the last years’ events. The Brexit has been the first event to take place followed by the pandemic. Ever since the first discussions about Great Britain leaving the EU, the pound has faced many changes in terms of value.
In terms of stability, all these fluctuations of the British pound create chaos and instability on the market. The market stirred up when a possible Brexit was mentioned. No one knew at that moment under which terms the exit will take place. Currencies, at a European level, started going up and down in value, creating chaos and confusion. The pound was undervalued due to uncertainty surrounding its plan to exit the EU. Last year was volatile when it comes to the value of GBP. Although negotiations regarding the Brexit were almost done, the COVID-19 pandemic hit and took another plunge on the British currency.
The pound has ended 2020 on a good level than the beginning of the year. The current year has also had a good start for the currency. Analysts say this is because of the good process of vaccination against the virus. The country is feeling optimistic to reopen the economy and industries affected.
How does the british pound forecast look like?
According to market analysts, currencies should stabilize more in the close future. However, it is still hard to mention a precise rate at which the British pound will stabilize itself. A stabilization is going to happen in terms of political events. The Brexit is over and regulations are in place. Therefore, this should no longer have an impact on the value of the pound. Predictions are also positive when it comes to vaccinations and recovery after the pandemic.
The good value it had at the beginning of the year gives hopes for a slighter bigger increase in value. As the country starts to stabilize itself, officials see potential in the British currency. However, it is not easy to give a precise and exact value. Analysts can make only estimations and predictions regarding the position of the pound against other currencies like USD or Euro.
A British pound forecast at the moment is a positive one, keeping an open door for unpredictable events and other economic pressures. In order to have a clear view about which way is the pound going, analysts keep an eye on both other major currencies, USD and Euro.