Latest market action showed the Nigerian naira showed strength against the British Pound sterling.
CBN’s latest data showed that the British Pound Sterling is currently being traded at N1,858 per Sterling.
The data showed a gain of N38 from when the Nigerian currency hit a fresh low of N1,896/£1 on 29th of April
This exotic pair has been stable for some time in Nigerian official market, but higher volatility is expected due to crude oil prices, Nigeria’s central bank intervention, UK interest rates and the global appetite for risk.
Price action has been stable, with the pair consolidating, moving averages trending up, and fading short-term momentum.
It’s common for a pair to pull back to a support level before any uptrend continues. Failure to break resistance stationed at N1850/£1 could lead to a stronger Naira and testing of the level N1,900/£1 due to CBN interventions.
The naira’s high volatility, mainly caused by panic in previous years, was significantly reduced thanks to strong backlog clearing efforts and subsequent tightening measures. However, the currency remains sensitive to global oil price fluctuations.
The Bank of England’s hawkish stance on inflation provides a support level for the Pound, preventing it from dropping against other emerging market currencies.
The demand for Sterling remains high in parallel markets due to panic buying and the needs of foreign exchange travellers and students. Unofficial foreign exchange trading centres in major Nigerian cities quoted the British Pound at N1,910 per sterling.
The disparity between the Pound and the Dollar in parallel and official markets continues, although policy measures aim to narrow the exchange rate gap, mainly driven by demand for England’s education and vacation.
Positive UK economic data support the Pound’s strength, while the Naira shows resilience due to improved foreign exchange inflows from crude oil sales.
However, the local currency faces additional seasonal pressure at the end when foreign currency demand rises. For the latest daily weighted averages and trading volumes, market participants should check FMDQ’s official closing data later today.
British Pound posts slight gains against the American dollar
The Pound Sterling traded at about 1.36 against the US dollar. Recently, the Pound has gained marginally against the dollar amid the BoE’s less dovish approach and hints of a possible rate hike later this year. US employment figures for April will be released on Friday.
- The British Central Bank maintained its rate at 3.75%, aligning with expectations, and indicated that rate hikes could be appropriate without committing prematurely. BoE Governor Andrew Bailey warned of potential ‘forceful tightening’ if energy price shocks from Middle East conflicts justify it.
- The ongoing Middle Eastern conflict, especially in the Strait of Hormuz, remains a headwind for currency pairs.
- US President Donald Trump announced plans to escort neutral ships through the Strait, while Iranian officials condemned interference as a breach of ceasefire agreements.
Currency traders are preparing for April’s US employment report, expected to show 73,000 new jobs and a stable unemployment rate of 4.3%. Any signs of labor market weakening could influence the USD/GBP exchange rate.
The Bank of England kept interest rates steady at 3.75%, with an 8-1 vote to hold. UK inflation rose to 3.3% in March 2026.
The BoE warned that rates might need to rise 4% or higher later this year if energy shocks persist, to prevent wage-price spirals
The UK housing market remained resilient in April despite expectations of a 0.5% decline in real household incomes by mid-2026, with a 0.4% month-over-month price increase amid high interest rates.
