Pound's Forecast Path Takes a Sharp Turn in 2027

FX analysts at Crédit Agricole have forecasted a sharp turn in the British Pound's (GBP) path by 2027. According to their predictions, the GBP/USD exchange rate will drop to 1.31 by December this year before recovering to 1.39 in late 2027.

The current exchange rate is around 1.3517 after a volatile session driven by stronger US employment data. The analysts maintain a cautious outlook for the Pound, citing persistent stagflation risks affecting the UK economic and fiscal outlook.

Crédit Agricole expects the GBP/USD to reach 1.32 in March 2027, 1.34 in June, 1.37 in September, and finally 1.39 by December 2027. This forecast implies Sterling losses of approximately 3.1% from its current level.