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Newspage Raw

Pound rises to its highest level since the Brexit referendum

ended 05. November 2026

The pound has risen to its highest overall level since the Brexit referendum over a decade ago.

Sterling has risen notably in recent weeks against the euro and the dollar, ahead of an expected rise in the Bank of England base rate today.

The pound was up 0.13% against the dollar at $1.3495 and 0.16% lower against the euro at €1.1979 as of 4.15am on Thursday.

Questions for Newspagers

  1. Why is the pound doing so well?
  2. Is now the time to buy your euros or dollars?
  3. Where will it go in the coming weeks and months?

6 responses from the Newspage community

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Dave HuggettVerified
Founder at Lucid Foreign Exchange
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We think the main driver of the pound is expectations around today's Bank of England interest rate decision. When markets expect rates to stay higher for longer, demand for that currency tends to rise with it, and sterling has benefited from that in recent weeks. Currencies can move for many reasons at the same time though, so we'd be careful about pinning it on one cause.

Nobody can pick the best day, and we'd steer people away from trying. A stronger pound is a helpful backdrop if you're selling GBP, but the more useful question is how much certainty you need. Splitting a transfer into stages, or fixing a rate in advance for a known payment means you're not relying on one moment.

Forecasting can be hard, and we'd be cautious of anyone who sounds certain. Today's decision and the tone around it could move sterling either way, so we'd work out what you need to buy by when, and how much movement your budget can take, then plan from there.
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Tony RedondoVerified
Founder at Cosmos Currency Exchange
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On 30 October, Sterling hit its highest against the Euro since March 2025, and this morning it touched a new seven-week high against the Dollar. Given the perilous state of UK finances, this isn’t UK strength, it’s three things. First, a carry trade advantage: BoE Bank Rate at 3.75% against the ECB’s 2.5% gives Sterling a 1.25-point yield advantage, pulling in capital. Second, inflation, at 3.5% in September, above target since September 2024, with the UK a net energy importer and exposed to global prices. The BoE is expected to hike another 0.25% at lunchtime, widening the carry trade advantage, while the ECB and Fed both held this month. Third, France. Markets are fixated on it as the next potential domino that could fall, however bad the UK’s own finances are. Looking ahead, momentum hinges on BoE guidance, growth resilience and energy prices, but tighter policy risks choking already anaemic economic growth and capping further gains.
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Nouran MoustafaVerified
Practice Principal & IFA at Roxton Wealth
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I'm delighted to see sterling recovering. A strong pound is good news for British consumers, particularly those travelling abroad or buying imported goods.

But let's not confuse a stronger currency with proof that the UK economy is suddenly thriving.

Sterling is benefiting from expectations of higher Bank of England interest rates and a weaker US dollar. Higher rates can attract investors, but they also mean more expensive borrowing for British households.

For anyone planning a holiday, now could be a sensible time to exchange some money rather than gambling on further gains. I'd consider buying in stages.

Over the coming months, the pound's direction will depend on interest rates, inflation and confidence in Britain's economy.

I believe Britain has enormous economic potential, but a strong pound needs to be supported by sustainable growth, not simply higher interest rates.

A strong currency is worth celebrating. A strong economy would be even better.
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Harry GoodliffeVerified
Director at HTG Mortgages
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The cheaper holiday is being paid for by someone’s mortgage. The Pound is climbing because markets expect the Bank of England to raise the base rate today, and higher rates mean dearer borrowing for every household coming off a fixed deal this winter. There’s no clever story behind the pound’s strength. It’s the reward for having higher rates than our neighbours, a prize most homeowners would happily hand back. Anyone with a trip booked should enjoy the exchange rate while it lasts, because the rally will fade the moment the Bank hints it’s finished. I expect a strong pound and weaker household budgets for the rest of the year.
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David BelleVerified
Founder and Trader at Fink Money
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Pound is doing so well as the BoE is hiking more than other central banks.

The Fed went no hike and the BoE is set to hike today.

Traders are therefore betting on a wider interest rate spread which spurs FX activity in favour of the currency with the higher rate.

This could be good for UK citizens since imported inflation will be dampened, but interestingly, oil has broken down through some key trend levels since Trump's midterm drubbing so you could ask the question whether the hike is coming into some period of disinflation.

My take is UK energy is a bit of a basket case which creates structural inflation problems, something which higher interest rates won't fix and will simply add more cost to the consumer and businesses.
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Prem RajaVerified
Head of Trading Floor at Currencies 4 You
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Sterling has benefited from stronger UK growth, persistent inflation and expectations that the Bank of England will raise rates today. Falling oil prices and a weaker dollar after the US elections have also helped. While the pound may be at a post-referendum high on a broad trade-weighted measure, GBP/EUR and GBP/USD are not individually at decade highs.

For anyone needing euros or dollars, current levels are attractive compared with much of this year, particularly with GBP/EUR close to 1.20 and GBP/USD near 1.35. Trying to predict the absolute peak is difficult, so converting part now and managing the remainder through staged purchases or market orders may be more sensible than waiting for one target.

The near-term direction will depend on the Bank of England’s vote and guidance. Further rate increases could support sterling, but cautious guidance may trigger profit-taking. US jobs data, oil prices and geopolitical developments will also be important over the coming months.