While exploring historical currency charts or current pound prediction 2022 we can see the tries to aim the target of 1.40 USD.
We think net longs in the pound will continue on optimistic expectations for a UK economic recovery, fuelled by faster vaccinations and weaker containment measures. The rise in the number of Covid-19 cases around the world has picked up again, but the UK economy, which has reopened bars, restaurants and shops, should pick up growth, which will work in favour of the pound, especially if the vaccination program is actively continued, hospitalization rates will remain low and border controls will remain at their current levels. In this case the level of $ 1.40 dollar for one pound seems realistic.
Sterling may strengthen further this year as the global economy recovers from the coronavirus, but is likely to weaken in 2022 as market attention returns to Brexit, Bank of America reported. According to BofA currency strategist Kamal Sharma, Brexit will become a bigger problem in 2022, when the UK economy returns to some normal steady state after recovering from the coronavirus.
That Brexit again: popular vote is still viewed as a negative factor in pound to dollar prediction
Although investors pushed concerns about Brexit to a second plan, we think that its consequences will start to affect the economy: reduced productivity growth and business investment, as well as a lower rate of trending growth. BofA expects the Brexit deal to cut UK economic growth by 5-7.5% over the long term.
“The first quarter could well represent the high point for the pound’s sweet spot,” Sharma notes.
He believes that the good news about the UK recovery is getting in. The Bank of England has moved away from negative rates; and there was practically no special risk premium in the British pound sterling.