We can’t predict exactly what the US dollar exchange rate 2020 will be, or any currency come to that – if only! But we can look at some pointers.
If we look at the trend for 2019 then it’s not hard to see that fluctuations in the pound, and therefore exchange rates, has been affected in large part by Brexit and in particular the shenanigans in Parliament.
This time last year at the beginning of January 2019, the USD rate was relatively stable and you could get a rate of around 1.260. On 15th January the then Prime Minister Theresa May tried to get her negotiated deal through parliament and suffered the biggest defeat in modern Parliamentary history. So what happened to the exchange rate? Well the pound actually gained in strength and so did the exchange rate and on January 24th the dollar peaked at 1.304
Between March and May 2019 the dollar stayed fairly calm around the 1.30 mark then in May after disastrous attempts by the Government to pass a Brexit deal, the Prime Minister said she would stand down and the hunt for a new Conservative leader started early June and ended on 24th July with the election of Boris Johnson. Boris had a rocky start with parliament and his plans for Brexit, and the effect of this was to send the US dollar plunging to it’s lowest level in August 2019 – in time for the main holiday season, to 1.200.
From August, when hopes were raised of Brexit being sorted by the Prime Minister, then a general election called and a resounding victory for the conservatives, the pound rallied and the USD exchange rate hit it’s highest level all year on December 12th at 1.331.
2020 US dollar rate?
What does all this mean for 2020? Is there anyway to predict what might happen to the pound in the coming months? The strength of the pound affects all currencies and not just the euro and the US dollar so can we have any idea to plan when we buy our travel money?
The short answer is no! There are so many factors that can affect the exchange rate that even if we see relative calm on the domestic front, world events can also have an effect and the apparent unpredictability of Donald Trump we know can make a difference. We can look ahead and see what might be on the horizon and make a prediction about the effect on the pound and might get lucky.
For most of us that are looking forward to a holiday in the spring or summer and are only looking for an average amount of currency, then it’s probably not worth worrying too much about rates. The difference between the average rate for the year and the highest and lowest was around 4% so on a purchase of £1000 that would have meant plus or minus around $30-40 so not eye watering amounts.
It is probably good advice to sit back and spend your time researching and planning your next holiday than worrying about exchange rates. Then when the time comes to get your travel cash find the best possible rates on Compare Holiday Money.