GBPUSD - 2021-2022 FX Forecasts from investment Bank Barclays
The bank remains confident in a UK economic recovery, but expects that monetary policy will be the key influence on Sterling.
“We also expect the BoE to move in line with the Fed and slowly signal some monetary policy normalisation.”
If, however, the Bank of England lags behind the Fed in terms of adjusting policy, then the Pound to Dollar (GBP/USD) exchange rate is liable to lose ground.
Assuming the BoE does respond, GBP/USD is forecast to be little changed with the Euro to Pound (EUR/GBP) exchange rate weakening to 0.82 by the third quarter of 2022.
“We also expect the BoE to move in line with the Fed and slowly signal some monetary policy normalisation.”
If, however, the Bank of England lags behind the Fed in terms of adjusting policy, then the Pound to Dollar (GBP/USD) exchange rate is liable to lose ground.
Assuming the BoE does respond, GBP/USD is forecast to be little changed with the Euro to Pound (EUR/GBP) exchange rate weakening to 0.82 by the third quarter of 2022.