Gbpusd Forecast Scotiabank

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Gbpusd Forecast Scotiabank

Gbp/Usd Forecast For End 2026 - Scotiabank

Scotiabank has issued a forecast for Scotiabank in which they see the pair heading towards 1.48 by the end of 2026. That's a bullish forecast from Scotiabank, given that the GBP/USD is around 1.33-1.34 for now.

Overall, the bank is bearish on the US Dollar while it expects a recovery in the GBP. According to Scotiabank, the GBP will recover because the budget fears were mostly overplayed.

Gbp/Usd To Touch 1.48 By 2026

By the end of the year 2025, the bank sees the pair closing around 1.40. Once again, they are forecasting the GBP/USD to close the year on a strong note.

So, based on the current exchange rate, that's like a gain of around 1400 - 1500 pips. Now, that's a very bullish price target and shows that things will be tough for the US Dollar in the next year.

Scotiabank believes that the US labor market is going through a lot of uncertainty. On top of that, the Fed's policy will also radically change once the new chair is appointed by the US president.

And last but not least, the tariffs are still a big threat to the US economy. After all, higher inflation will directly affect the US consumers, and that's not something that can be avoided.

With the way things are right now, the US Federal Reserve wouldn't have enough legroom to further delay the rate cuts. And once the rate cuts pick up pace, the support for the US Dollar will simply vanish.

They also added that the US Dollar faces some risks due to the ongoing current account deficits. Also, the budget issues are still present, which will also weigh on the US Dollar.

But the US government will be happy if the US Dollar turns weaker. After all, that would help the US export sector and may even help it to bridge some of the current account deficit.

Meanwhile, the UK bond market and the fiscal policy are also going through a period of uncertainty. But the bottom line is that the market fears are excessive, and the GBP will regain ground next year.

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