Columbia Threadneedle: Will £ Hit $1.50 in 2025?

Signs indicate sterling’s ascent has begun in earnest. How soon before it reaches $1.50?

01.10.2024 | 06:01 Uhr

Key Takeaways

  • The US v UK interest rate outlook has undergone a radical shift in recent weeks. In the currency markets, this has been reflected by support for sterling.
  • This could be dented if rising household energy bills dampen the outlook for improving UK growth but we expect the overall impact to be limited.
  • Consumer confidence should bounce back after the Budget, later this month, as the government has overdone the expectations management.
  • In the US, most members of the FOMC feel the war against inflation has been won but the Fed remains acutely sensitive to further labour market weakness.
  • Forecasting currencies is a risky business but I think the next major move in sterling is up.


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