GBP/USD Divergence: Fed-BoE Rate Bets May Sink Sterling's Value
The GBP/USD forecast for 2026-2030 suggests that Sterling may struggle to hold onto its current value of 1.35 as interest rate bets between the Federal Reserve and Bank of England diverge.
Markets.com analyzed the economic indicators and found that the Fed is likely to raise rates more frequently than the BoE, which could lead to a stronger US dollar and a weaker pound.
This divergence in rate expectations could cause the GBP/USD exchange rate to decline, potentially dropping below 1.30 by 2030.