Forecasts for the pound (GBP USD) varies from bank to bank and from month to month. This article takes a look at the general trend in GBP USD forecasts and how it might impact you.

The Forecast for the GBP in 2018

The Great British Pound (GBP or Pound Sterling) is slowly gaining, since hitting 31-year lows in October 2016, but it’s been a bumpy ride. However, a recent drop in the GBP USD rate has the market spooked. The uncertainty could mean further declines in the GBP near-term. For the rest of 2018, most bank analysts still predict the pound sterling to remain flat – basically unchanged from current levels of 1.3558.

 

Transferring Money Overseas

If you’re looking to transfer money overseas, it really depends on the destination you’re moving your money across to. Generally speaking, a weaker GBP means it will be more expensive to transfer money overseas.

Check out the forecasts below for the average exchange cross rates expected in 2018 for the top 3 money transfer destinations.

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GBP EUR

Major banks agree the GBP EUR will move lower in 2018. Most are now expecting the rate to weaken by the end of 2018. Major banks are currently forecasting the rate will either remain unchanged from current levels to around 1.130, or fall down towards 1.050.

 

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GBP AUD

The GBP AUD exchange rate is set to rise near term according to major banks. Longer term isn’t as clear. It looks like most banks expect the GBP AUD rate in 2018 to move between a 1.700-1.900 range, higher than in 2017, but perhaps with a few more bumps.

 

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GBP NZD

The GBP NZD exchange rate has moved higher to 1.959. Longer term outlooks for 2018 suggests the GBP NZD cross rate will continue to improve towards 2.300 or could spike even higher to 2.400.


 

How to Find the Cheapest Way to Transfer Money Overseas

Compare The Total Cost

The total cost of the transfer comes down to 2 things:

Money transfer fees

1. Transfer Fees

Every Australian bank and money transfer company will charge you a different fee to send money overseas. Usually it’s between $10 and $32.

Exchange rate margin fees

2. Exchange Rate Margin

There is no “standard” exchange rate. Each bank will offer you a different exchange rate based on the currency you want to send overseas and the amount you need to send.

 

Provider Exchange
Rate
Transfer
Fee
Transfer
Time
Total (AUD) Rates last updated October 18 2018
TorFXRead Review 0.5423 $0.00 2-3 Days $18,440.49Lowest Cost Option Go to site Read Review
So, sending GBP 10,000 to United Kingdom at an exchange rate of 0.5423 will cost you $18,440.49 with no fees.

About TorFX

TorFX are particularly good taking care of customers over the phone but using their website isn't the easiest to use. They don't charge a flat fee which is great but it's important to consider their exchange rates. While, they don't offer fantastic rates for small amounts under $2000 , TorFX offer exceptionally good exchange rates for larger transfers to the UK, New Zealand, South Africa and Europe.

Pros

  • No transfer fees
  • Highly competitive exchange rates
  • Secure transfers with authorised
  • Assigned account manager
  • 24 / 7 Assistance
  • Available range of transfer options

Cons

  • Limited exotic currencies available
  • Exchange rates on small transfers aren't great
  • Website experience could be better

TransferwiseRead Review 0.5450 $92.74 1-2 Days $18,441.03$0.54 more expensive Go to site Read Review
So, sending GBP 10,000 to United Kingdom at an exchange rate of 0.5450 will cost you $18,441.03 which includes a fee of £92.74

About TransferWise

Transparency and an easy online experience are the 2 things that set TransferWise apart from the banks and other money transfer companies. If you prefer to bank online, you'll like TransferWise. Setting up an account and making a transfer is very easy. They are also very clear on the exchange rate and fees you'll pay before you make a transfer. Click here for the full review

Pros

  • Clear and transparent exchange rates fees
  • The online experience is first class
  • Like the banks, they are regulated by ASIC and registered with AFSL
  • Constantly bringing out new innovative products

Cons

  • There are currently a number of global currencies they do not currently support
  • Limited support based in Australia
  • Percentage based fee can add up on very large transfers

XERead Review 0.5421 $0.00 2-3 Days $18,447.91$7.42 more expensive Go to site Read Review
So, sending GBP 10,000 to United Kingdom at an exchange rate of 0.5421 will cost you $18,447.91 with no fees.

About XE

XE is a well known and trusted name in the money transfer industry. With over twenty years experience, they now help 33,000 people and 2,000 businesses make transfers each year. Over 60 currencies can be transferred with XE and they pride themselves on the free tools and transparent rates they offer. Click here to read the full review

Pros

  • Well known and trusted brand.
  • Very informative website. Extensive information on currency and money transfers.
  • XE App is available on both iOS and Android. It allows you to see the interbank rate for over 100 currencies.
  • XE themselves charge no fees for international money transfers.
  • Offers support for both individuals and businesses when it comes to international money transfers.

Cons

  • Cannot pay via cash or cheque. Must pay via bank transfer, BPay is also accepted in Australia.
  • Maximum transfer amount is $500,000USD.
  • While XE compares more than 100 currencies, there are only 60 that are available for money transfers.

WorldFirstRead Review 0.5417 $0.00 2-3 Days $18,459.04$18.55 more expensive Go to site Read Review
So, sending GBP 10,000 to United Kingdom at an exchange rate of 0.5417 will cost you $18,459.04 with no fees.

About World First

World First was founded in 2004 in the UK and has grown rapidly with offices now in the U.S., Canada and throughout Asia. They consistently receive strong customer reviews and in a recent study, 98% of their clients said they would use them again.World First have a strong online offering, particular for businesses selling online. They do provide local support as well with offices in Sydney. Click here to read the full review

Pros

  • Low fees and great exchange rates
  • Safe and secure transfers
  • Regulated by ASIC and registered with AFSL
  • Great for personal and business payments

Cons

  • Does not accept BPAY, credit card, cheque or cash
  • Limited currencies available

HIFXRead Review 0.5417 $0.00 2-3 Days $18,459.04$18.55 more expensive Go to site Read Review
So, sending GBP 10,000 to United Kingdom at an exchange rate of 0.5417 will cost you $18,459.04 with no fees.

About HiFX

HiFX are one of the biggest money transfer companies in the world. Their parent company Euronet is listed on the NASDAQ and recently acquired Xe.com. They are particularly useful for individuals doing regular transfers overseas. HiFX provide competitive exchange rates no matter how much is being transacted. Their $50 minimum transaction size and flat fee makes them a great option for any international payment. Locally, HiFX have Australian offices in Sydney, Melbourne and are expanding to the remaining capital cities. Click here to read the full review

Pros

  • Fantastic bank - beating exchange rates
  • Low fees for transactions less than $10, 000
  • No fees for transactions of $10, 000 or more
  • High security transfers regulated by ASIC and FMA
  • Fast and easy for personal or business accounts

Cons

  • Only electronic bank transfers accepted
  • Limited exotic currencies
WorldRemitRead Review 0.5387 $3.99 1-2 Days $18,565.82$125.33 more expensive Go to site Read Review
So, sending GBP 10,000 to United Kingdom at an exchange rate of 0.5387 will cost you $18,565.82 which includes a fee of £3.99

About WorldRemit

WorldRemit are particularly good for transfers under $10,000 to destinations across Asia, Africa and South America. Sending money online is significantly easier than using companies like Western Union or Moneygram and their exchange rates and fees are clear and transparent. With 2 million users, WorldRemit has a focus on improving access to remittances for the billions people worldwide who don’t have access to banking. Because of this, WorldRemit has a number of ways to both make and receive transfers. They concentrate on servicing individual needs as opposed to businesses. Click here for the full review

Pros

  • They have a great network in Asia and Africa and number of receiving options like cash-pick up or bank transfer.
  • They are clear about their exchange rates and fees
  • No minimum amount

Cons

  • Maximum transfer sizes for every transfer
  • No support for business customers
  • They are not licensed to provide financial advice.
OFXRead Review 0.5375 $0.00 1-3 Days $18,604.65$164.16 more expensive Go to site Read Review
So, sending GBP 10,000 to United Kingdom at an exchange rate of 0.5375 will cost you $18,604.65 with no fees.

About OFX

OFX (formally known as Ozforex) is the largest Australian owned money transfer company. It launched in 1998 and grew rapidly until finally listing on the Australian Stock Exchange in 2013. OFX excels in 2 areas – Online experience and customer service. The company was born online and continues to develop easy, intuitive products. While OFX customers do most of their transactions online, they are backed up with exceptional customer service.

Pros

  • Better exchange rates compared to banks
  • Highly safe and secure transfers
  • 1 - 2 days delivery times for most countries
  • Quick response time
  • Fantastic customer service

Cons

  • Credit cards, cheques and cash are not accepted
  • Transfers to Thailand can take up to 4 days
  • Fees for transfers smaller transfers

ANZRead Review 0.5210 $0.00 1-2 Days $19,193.86$753.37 more expensive Go to site Read Review
So, sending GBP 10,000 to United Kingdom at an exchange rate of 0.5210 will cost you $19,193.86 with no fees.
ANZ International Money Transfer is a secure and fast way to transfer money overseas.

Pros:

  • Fast transfers
  • Safe and secure
  • No fee for transfers under $10 000 via Internet banking

Cons

  • $12 fee for transfers under $10 000 via Internet banking
  • Poor exchange rates
  • 24 hour hotline not available

Commonwealth BankRead Review 0.5159 $12.00 1-2 Days $19,395.60$955.11 more expensive Go to site Read Review
So, sending GBP 10,000 to United Kingdom at an exchange rate of 0.5159 will cost you $19,395.60 which includes a fee of £12.00
Commonwealth Bank provides secure and easy transfers to over 200 countries and more than 30 currencies.

Pros:

  • Fast transfers+ Easy transfers
  • Security guarantee covers any losses from unauthorised transactions

Cons

  • $6 fee for transfers under $1000 via Internet banking
  • $12 fee for transfers under $1000 via Internet banking
  • Poor exchange rates


 


 

How does a weak GBP affect me?

Expats and Pensioners

2018 British Pound Forecast

A weaker pound is disastrous for British people living abroad. Many who have moved overseas will see a dramatic fall in spending power. The the GBP could improve in 2018, but the outlook is uncertain.

For pensioners, many who have retired abroad will see a dramatic fall in the spending power of any UK state or private pension income with a weaker sterling.

A couple years ago £100 pounds would have gotten you $200 in Australia, one of the most popular retirement destinations for British expats. But now the same £100 pounds of income will only return $172 Australian dollars, almost 15% less.

If you’re in a hurry to sell your UK asset, such as a house or company, to support your lifestyle overseas, you might get more interest from foreign buyers with a weaker pound. While you’ll get more demand for your asset, you might not get the value you want from the sale.

It might not be a great time to be an expat, but you can manage and maximise your money transfers abroad by looking at different options. Check out our currency calculator for the best rates from different money transfer providers.

Travellers

2018 British Pound Forecast

It’s not really a good time for Brits to go abroad, but if the pound does improve slightly in 2018 it might be ok to do some summer travel.

Holidays in Europe and elsewhere are currently still painfully expensive, which means the idea of a staycation holiday closer to home might be more tempting during the winter months.

Foreign tourists visiting the UK will benefit from a weak GBP. So UK tourist attractions and anything associated with the leisure industry, such as restaurants and hotels will do well. Working in these industries will certainly be beneficial.

What are the key influences on the GBP?

1. British (UK) Economy

The UK is growing – but really slowly. This means the pound sterling is unlikely to rise strongly. Many were predicting a drastic economic collapse after the UK left the European Union (known as Brexit), but this hasn’t happened. Needless to say, many are unclear on what will happen next – and this uncertainty is negative for the GBP.

2. Politics

British politics has a big influence on the Pound. When the UK left the European Union in 2016, many people questioned whether the UK would be better off, which created much uncertainty. Greater uncertainty from politics means investors will sell the GDP, because there is a greater chance of it getting weaker.

3. Other Currencies

The US dollar (USD) significantly influences the GBP. Generally, when the USD gets stronger, the GBP is relatively weaker and vice versa. Interestingly, the pound sterling is one of the relatively few currencies that is worth more than the US dollar (meaning that one pound buys more than one dollar).

General advice: The information on this site is of a general nature only. It does not take your specific needs or circumstances into consideration. You should look at your own personal situation and requirements before making any financial decisions.


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Helping You Save Money on Currency

Buying travel money or transferring money overseas can be expensive and confusing. So how do you make the best choice and get the most out of your money?

An easy way is to use a comparison table for either international money transfers or currency exchange. These tables list and compare the banks with other large foreign exchange companies.

We’ve also put together tons of helpful videosguides and reviews that will help you make the right decision. You can work out a cheaper way of converting currency while still keeping your money safe.