2016 Pound performance breakdown


2016 Pound performance breakdown: How did the Sterling trade against significant currencies last year? What has affected the performance?

9 January, AtoZForex The Sterling has lost a fifth of its value versus nine important currencies in 2016. According to the analysis by the Lloyds Private banking, the Pound owes its biggest declines to Brazilian real, the Russian Rouble, and the Icelandic Krona. The declines appeared at 28,4%, 28%, and 27,9% drops, respectively. The overall research took into consideration as much as 60 currencies.

2016 Pound performance

The downward movements during 2016 followed the strong 2015 year for GBP. That time, the Pound gained versus more than ¾ of the currencies, according to Lloyds.

During 2016, the Pound dropped against 56 of the 60 currencies under the analysis. However, GBP significantly rose against two currencies last year, namely Egyptian Pound and the Mozambique Metrical. The gains accounted for 105.8% and 23%, respectively.

Moreover, the Pound advanced 0.3% versus the Turkish lira and stayed stable against the Danish Krone. The analysts from Lloyds stated that the GBP performance followed a similar pattern in the 6 months before the Brexit referendum and 6 months after. The Sterling depreciated in value against 54 out of 60 currencies under the analysis in the 6 months prior to the 23rd of June. Following the same pattern, it has declined against 51 currencies in the wake of the Brexit vote.

Brexit realities hit Britons

The expatriate banking director at Lloyds Private Banking, Peter Reid, has stated:

“The pound’s decline is bad news for British holidaymakers, with most destinations becoming more expensive in 2016.”

A number of British expats will also experience the Brexit consequences, as their incomes come in Sterling. The bearish sentiment for GBP also affected pensioners, as they are receiving fewer Pounds when converting their funds. Mr. Reid has added:

“However, on the other end of the bargain, British expats living and working abroad and earning in foreign currencies are now getting more pounds for their money and they are seeing their spending power surge when they head back to the UK.”

According to the research by Lloyds Private Banking, these are the 10 currencies with the largest gains against the Pound in the period from the December 2015 to December 2016:

1. Brazil, real, down 28.4%

2. Russia, rouble, down 28%

3. Iceland, krona, down 27.9%

4. Colombia, peso, down 25.8%

5. Zambia, kwacha, down 25.6%

6. South Africa, rand, down 22.6%

7. Solomon Islands, Solomon Islands dollar, down 20.4%

8. Canada, dollar, down 20.1%

9. Indonesia, rupiah, down 20%

10. Western Samoa, tala, down 19.5%

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