The Nigerian naira has continued to show resilience against the British Pound, trading around N1,800/£ in the official foreign exchange market, its strongest level against sterling since late February.
In recent weeks, the naira has largely maintained a trading range of between N1,800/£ and N1,850/£, reflecting improving stability and declining volatility in the foreign exchange market.
Latest market movements indicate that the Pound-naira pair has entered a narrower consolidation phase, with balanced buying and selling activity replacing the sharp fluctuations recorded in previous weeks.
Analysts identified N1,840/£ as an initial resistance level, with stronger resistance between N1,880/£ and N1,900/£. A sustained move above N1,900/£ could signal renewed medium-term strength for sterling.
On the downside, support is seen around N1,780/£, with a stronger technical floor near N1,750/£. Maintaining these levels could help prevent the Pound from sliding toward its yearly lows against the naira.
The development comes as the Central Bank of Nigeria continues efforts to improve transparency in foreign exchange price discovery, promote market-driven pricing and inject liquidity into official forex channels.
Improved management of outstanding foreign exchange obligations and stronger supply conditions have also helped reduce pressure from excess demand, limiting speculative activity and supporting stability in both the official and broader currency markets.
The exchange rate outlook remains influenced by monetary policy developments in Nigeria and the United Kingdom. While the CBN’s tight monetary policy stance has helped reduce excess naira liquidity and curb speculative demand for foreign currency, developments in the UK economy, inflation and Bank of England policy expectations continue to shape the direction of sterling.
Analysts expect the Pound-naira pair to remain largely range-bound in the near term, with trading projected between N1,750/£ and N1,860/£, barring major shocks linked to crude oil earnings, foreign exchange inflows or monetary policy decisions by the Bank of England.
Pound Holds Around $1.35 Against the Dollar
Meanwhile, the British Pound remained in bullish territory around the $1.35 level during early European trading on Thursday, supported by a relatively weaker US Dollar.
Investors are closely watching upcoming remarks by Bank of England Governor Andrew Bailey, alongside the release of the latest US jobs report expected on Friday.
Market sentiment is also being shaped by developments in US monetary policy, with recent comments from Federal Reserve officials fueling speculation about the future direction of interest rates.
On the UK side, recent signals of tentative economic growth, a stabilising labour market and persistent inflation pressures have continued to influence expectations surrounding future Bank of England policy decisions.
With political developments in the UK remaining relatively quiet, market participants are expected to focus more heavily on economic indicators, inflation data and central bank signals for fresh direction.
Overall, the naira’s resilience against the British Pound is expected to remain supported by the CBN’s liquidity management measures and efforts to deepen stability in the foreign exchange market, while sterling’s next major moves will likely depend on developments in the UK economy and monetary policy outlook.
