Sterling's outlook is stable over the coming year, but a few currency strategists polled expect it to make significant gains if negotiations over Britain's departure from the European Union take a positive turn.
Forecasts from the poll of around 60 foreign exchange specialists, taken Dec 4-6, predict the pound will be worth $1.33 in a month, $1.32 in six and $1.33 in a year.
The most optimistic forecaster - ING - said the pound would be worth $1.53 in a year, which is the highest forecast provided in Reuters polls taken since the EU membership referendum in June 2016.
Last month, the BoE added back the 25 basis points it took off borrowing costs in the aftermath of the Brexit vote, taking Bank Rate back to 0.50 percent, but it won't act again until towards the end of 2018 when it will add another 25 basis points, medians in a recent poll showed.
However, investors remain hesitant about chasing the rallying pound higher even as the British government said it was close to an agreement with the European Union on how to move Brexit talks onto trade next year.
Trader-G.Bozhidarov
Read more:
25 Canada Square, Level 33, office 50, Canary Wharf London, E14 5LQ +44 20 3608 6256
World Financial Markets - 0700 17 600 Varchev Exchange - 0700 115 44
Varchev Finance Ltd is registered in the FCA (FINANCIAL CONDUCT AUTHORITY) with a passport in the United Kingdom: FCA, United Kingdom - registration number: 494 045, which allows provision of financial services in the United Kingdom.
Varchev Finance Ltd strictly comply with the statutes of the European directive MiFID (Markets in Financial Instruments). targeting increased efficiency, transparency and uniformity of financial instruments.
Varchev Finance Ltd is authorized and regulated by the Financial Supervision Commission - Sofia, Bulgaria: License number RG-03-02-05 / 15.03.2006
The information on this site is not intended for distribution or use by any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.
Disclaimer:
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 63,41% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money.