Year in Currency

Happy New Year! We wish you happy and prosperous 2024.

2023 is now in the history books and it’s been another busy and volatile year for currency markets, in particular the Pound. We’ve seen 5 interest rate rises pushing the base rate to a 15 year high, cost of living crisis with stubborn inflation reluctant to drop and economy stagnating as monetary policy takes affect on growth - but we have had the same Prime Minister for the full 12 months!

Despite the economic struggles, sterling had it’s best year against the USD since 2017, rising almost 6% since the start of the year. In fact sterling was the second-best performing major currency after the Swiss Franc.

In what was a relatively tighter price range in comparison to previous years, 2023 still saw a range of 11.5% on GBPUSD, 5.6% on GBPEUR and 8.2% on EURUSD.

With interest rates and economic uncertainty still likely to be the main market drivers for the next 12 months, including a US election and likely UK election, 2024 won’t see quieter market conditions.

We’ve developed a comprehensive outlook for all major currencies in 2024, including information on solutions, to help you better manage your exposure over the coming year. For more information please contact your account manager.

Have a good year!

Estuary FX

This week's key data