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Pound Forecast: Rise or Fall after Brexit

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Pound Forecast: Rise or Fall after Brexit

The statistic presents the monthly exchange rate of U.S. dollar to British Pound from January 2015 to April 2017. The USD GBP exchange rate amounted to approximately 0.78 on April 28 2017

Over the past two years, the U.S. dollar has been gaining strength over the British Pound. In January of 2015 one U.S. dollar could buy around 0.66 British Pounds and in September 2015, one U.S. dollar could buy 0.66 British Pounds. Over the same period of time, between January and September 2015, one Euro could buy 0.75 and 0.74 British Pounds respectively. Since 2009, the Euro has lost strength compared to the British Pound.

With a referendum pending this year where Britain will choose to leave or remain in the European Union, there is some speculation of how a Brexit would affect exchange rates and estimates of what would exchange rates might look like if Britain remains part of the European Union. Different scenarios and the effect on exchange rates have been estimated according to no referendum, the UK remaining in the EU and the UK leaving the EU.   

British Pound remain cautiously bearish despite the current situation, because Brexit still needs to be dealt with.  French presidential election impact on Britain; the general election affect the Pound which announced by Prime Minister Teresa May and German election, all means that there is unlikely to be much clarity offered until then.  Will the Pound rise or fall on France/ UK's General/ German Election?

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