Post-Brexit: USD–GBP international money transfers and USD forecast 31 Mar 2020

Experts say US dollar will rise in value when compared to the British pound.

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On the heels of ‘Brexit’, Britain’s decision to leave the EU on June 23 2016, the British pound (GBP) fell dramatically. Just one day later, the pound suffered its steepest one-day fall to close at $1.36. Fears over a possible UK recession further brought the pound to a 31-year low — a larger drop than during the financial global crisis of 2008.

If the pound continues to depreciate, UK’s central Bank of England may be forced to intervene by purchasing more pounds or raising interest rates. Such a move could affect homeowners in the UK. In the GBP’s steepest one-day fall, the pound closed at 1.36 USD on Friday, 24 June 2016.

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We’ve gathered today’s best rates to inform your foreign exchange decisions when sending money from the US to the UK.

Refreshing in: 60s | Mon, 30 Mar 11:06pm GMT
USD AUD CAD EUR CNY GBP INR MXN PHP
1 USD = 1.0000 1.6204 Inverse: 0.6171 1.4165 Inverse: 0.7060 0.9056 Inverse: 1.1042 7.1003 Inverse: 0.1408 0.8071 Inverse: 1.2389 75.4102 Inverse: 0.0133 23.8652 Inverse: 0.0419 50.9449 Inverse: 0.0196
1 AUD = 0.6171 Inverse: 1.6204 1.0000 0.8742 Inverse: 1.1440 0.5589 Inverse: 1.7892 4.3818 Inverse: 0.2282 0.4981 Inverse: 2.0076 46.5380 Inverse: 0.0215 14.7280 Inverse: 0.0679 31.4397 Inverse: 0.0318
1 EUR = 1.1042 Inverse: 0.9056 1.7892 Inverse: 0.5589 1.5641 Inverse: 0.6394 1.0000 7.8401 Inverse: 0.1275 0.8912 Inverse: 1.1220 83.2676 Inverse: 0.0120 26.3518 Inverse: 0.0379 56.2531 Inverse: 0.0178
1 GBP = 1.2389 Inverse: 0.8071 2.0076 Inverse: 0.4981 1.7549 Inverse: 0.5698 1.1220 Inverse: 0.8912 8.7968 Inverse: 0.1137 1.0000 93.4281 Inverse: 0.0107 29.5674 Inverse: 0.0338 63.1173 Inverse: 0.0158

Compare your options for the most competitive rate on GBP

Table: sorted by a combination of service offering and the amount your recipient will receive

Min. Transfer Amount Transfer Speed Online Transfer Fee Rate Amount Received Description CTA Details
GBP 2,000 1 day USD 0.00 0.8 GBP
3,998
TorFX guarantee to beat any competitor's exchange rate for a transaction (conditions apply)
(Conditions apply)
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GBP 5,000 Same day USD 0.00 0.804 GBP
4,022
Universal Partners FX offers competitive exchange rates and same-day transfers for 100+ currencies. Go to site Show details
GBP 3,000 1 day USD 0.00 0.8 GBP
3,998
Get no fees as a Finder customer when you transfer your money overseas with Global Reach. Go to site Show details
GBP 1 1 - 2 days USD 0.00 0.804 GBP
4,022
Whatever amount you transfer, XE will not charge you a fee for using their service. Go to site Show details
GBP 2,000 1 day USD 0.00 0.8 GBP
3,998
Make transferring money abroad as simple and safe as possible with bank-beating exchange rates - online, via the app or over the phone. Go to site Show details
GBP 2,500 1 day USD 0.00 0.8 GBP
3,998
With 17 years of foreign exchange expertise, OFX know the money transfers business very well, offering facilities for one-off and recurring transfers. Go to site Show details
GBP 5,000 1 - 2 days USD 0.00 0.8 GBP
3,998
Clear Capital specialises in sending over 150 currencies abroad for both individuals and businesses. Expect to receive a dedicated account manager and same-day transfers. Go to site Show details
GBP 2,500 Same day USD 0.00 0.8 GBP
3,998
Central FX’s dedicated private client team will guide you through the money transfer process from first call to final payment. Go to site Show details
GBP 5,000 1 day USD 0.00 0.803 GBP
4,016
Take advantage of fee lock-ins and live bookable rates, helping you save up to 85% in hidden bank fees. Go to site Show details
GBP 1,000 1 - 2 days USD 0.00 0.8 GBP
3,998
Better exchange rates for Finder customers.
Send 60+ currencies at competitive rates and no fees. If you find a better eligible quote, WorldFirst will beat it.
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GBP 1 1 - 2 days USD 1.99 0.797 GBP
3,984
Special offers like free transfers and better exchange rates available for new customers.
Quick, affordable transfers around the world with both express and economy options.
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GBP 5 2 days EUR 3.00 0.804 GBP
4,018
Special offer: Zero fees on your first 10 transfers.
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GBP 50 Same day USD 2.99 0.804 GBP
4,017
Use promo code 3FREE to send your first 3 transfers with no fee.
Send money online anytime, anywhere, with a simple to use platform and transparent fees and exchange rates shown upfront.
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Compare up to 4 providers

Disclaimer: Exchange rates change often. Confirm the total cost with the provider before transferring money.

What Brexit means for the United States

Experts are unable to predict what the future holds in the global markets. The UK is the world’s fifth-largest economy, and it’s also a strong US trading partner. While the UK’s unprecedented decision to leave the EU has triggered a stronger dollar, the US economy could feel negative repercussions of Brexit.

Stronger GBP–USD exchange rates are nice for travel but ultimately bad for trade. Trading volume between the two countries makes up 0.5% of US economic activity, and experts are concerned about a domino effect on the global economy.

What is brexit?

Short for “British exit,” Brexit refers to the historic vote of the British people on June 23, 2016, to leave the European Union. The full impact of Brexit on the global market is unclear, as is the process of how the UK will go about removing itself from the EU. However, we’re already seeing its effect on the USD–GBP exchange rate.

Lock in a competitive exchange rate using a money transfer

Many international money transfer services offer limit orders so you can lock in a desirable GBP exchange rate for any future transfers. This is handy for Americans with business in the UK, because you can purchase more goods with fewer dollars. If you need to transfer money overseas to the UK, now is a good time to lock in a GBP rate before it recovers.

Note that your recipient will need to have a bank account established in the UK, although there are some exceptions. You will need your recipient’s bank name, iSWIFT code and account number.

What is a swift code?

Short for the cumbersome Society for Worldwide Interbank Financial Telecommunication, a SWIFT code is an international bank code used for incoming transfers. Overseas banks each have a unique SWIFT code that identifies which bank to send money to.

Exchange rate history – US dollar to British pound

Great Britain’s pound sterling has a long history of trading with the US dollar. It’s the world’s oldest currency still in use and also the fourth most traded currency on global forex markets.

The US and the UK have maintained strong economic and political ties throughout the 18th, 19th and 20th centuries, making the USD–GBP exchange rate one of the most eagerly watched currency pairs in the world. Throughout history, the US dollar has performed weaker against the pound, especially during the early years of the United States.

From February 2002 to October 2015, the British pound traded at an average $1.67 to the dollar, rising as high as $2.09 in 2007.

Forecasting the USD to GBP exchange rate based on historical data

The past can be a good indicator of the future. Depending on sociopolitical atmosphere, interest and inflation rates, foreign trade, public debt, and export to import price ratios all influence exchange rates. Below you can find the average exchange rate for the past ten years.

2016201520142013201220112010200920082007
USD = GBP0.73700.68100.63200.66500.656000.64900.67300.66700.56700.5200

Data courtesy of the IRS.

British pound historically strong against US dollar

From late 2002 onward, the burst of the dot-com bubble and high levels of mortgage debt weakened the US dollar. This lead to steady losses against the pound until it reached $2.09 against the pound in early November 2007. At the same time, the mortgage crisis pushed the value of the US dollar lower relative to many other major currencies.

Soon after, global financial difficulties spread to the UK. Its economy suffering, the government implemented a quantitative easing program to increase the supply of money and stimulate the economy. This prompted a drop in value for the pound against the US dollar and most other major currencies, with the US dollar experiencing a sharp spike $1.36 per pound by January 2009.

However, some of those gains were lost due to the economy’s slow recovery from the global economic downturn, with the pound in a range from $1.69 to $1.47 from 2009 to 2013.

US dollar strengthens against a weak pound

Despite the reasonably steady performance of the pound, analysts are concerned by the effect of rising debt in the UK on the economy. When Moody’s downgraded the UK’s debt rating in 2013, it was the first time ever the UK had suffered a downgrade.

Not long after, the US economy began to enjoy a sustained period of recovery and then growth. With improving employment figures, higher domestic production of commodities and a rise in levels of consumer confidence, the dollar rose in value against major currencies around the world, climbing to $1.49 against the pound in the first half of 2015.

Meanwhile, the UK economy is hampered by concerns about debt levels and its links to the Eurozone. As the ongoing Greek debt crisis continues to affect the performance of the euro, the flow-on effects are felt in the UK. The UK also has one of the largest current account deficits of any developed country, while the US economy shows strong signs of continued growth.

Many analysts predict the US dollar will continue to rise in value against the pound and many other major currencies in 2017.

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