Forex: The Pound Sterling under pressure is not a novelty for the analysts. This will continue to affect their ratings in the Forex market. What will be a forex profitable in the future?
The uk has been commissioned to weaken its own currency, in search of his independence. At this point, the economists of the block of the European Union fear that the british pound can no longer be under pressure.
The Uk economy has been suffering from multiple strokes for a long time. Since the country uk took the decision to undertake a journey on their own, without being part of the block of the European Union, in 2016, it has been uphill to recover to its economy and its currency.
The analysts of this exit of the Uk from the European Union, considered the largest stone of the crossbar to the desired advancement of the british economy has been the Brexit. Even, the face of this health crisis of the coronavirus, the Brexit is still causing havoc, the more severe the pandemic, to the british.
The constant failure of the Pound Sterling
The currency british retreated in front of a dollar that has remained strong in higher positions on Tuesday. This happened, while the investors in the market were waiting for the confirmation of the spending plans of the government to lift the british economy. Which, recorded its largest contraction in over 40 years to the early 2020’s.
After the close economic that they had to face the United Kingdom by the pandemic, the reopening of the economy has been uphill. Already the british nation was facing a deep recession due to the termination of interconnection with the EU. But, this did not deter the United Kingdom to point to the rise of its economy as in the past.
In this way, the Uk government took the decision to maintain certain connections and commercial agreements low controls tariff with the European Union. These agreements would start to be discussed in mid-march, but the meetings were postponed by the crisis situation.
However, follow the insecurities on the part of investors. These are reflex in the Forex market, despite the promises of trade agreements and an injection of money to the british economy.
The Pound Sterling under pressure, there is a fear that the Uk is not able to close a trade agreement with the European Union before the deadline of the end of 2020. Tuesday is the last day you can request an extension of the transition period, but the EU has refused to do so.
A currency getting weaker
The weakness of the Pound that we have been witnessing seems to promise to stay. This is a trend that has been in place for some time. For this reason, analysts in favor of the block of the European Union claim that this weakness will increase to the United Kingdom.
“The pound is on its way to becoming the currency of the worst performing this month for the second month in a row.”
Lee Hardman, strategist at the foreign exchange of MUFG in London
The Pound hovered around the ratings, the minimum of the month. Falling 0.15% to $ 1.226 at 08:30 GMT, and remained above the minimum of three months against the euro to 91.34 pence. However, the currency has fallen more than 7% so far this year against the dollar, according to figures from Reuters.
In the Forex market it is expected that the indices continue to be negative. It is also expected that the Pound Sterling remains under pressure, the uncertainty that this currency has been generated since the Brexit.
In addition, the outlook for the future that is looming, then prime minister, Boris Johnson, announced a plan that promises to accelerate the infrastructure investment of 5,000 million pounds ($6.130 million), has only generated more concern among investors.
The future of the currency british remains uncertain. More now that the peak of infection of the coronavirus began to increase in the last week, after that some small towns of England to open their business premises.
Quote the Pound Sterling at the date
At the time of the writing of this article the british Pound Sterling is traded in the Forex market with $1.2384 points, with a minimal rise of 0.6%, but with biases to a negative trend constant.
British pound under pressure in the Forex Market by the economic actions of the british government. Source: Yahoo Finance
In summary, analysts expect that the month of July is difficult, and that the Pound Sterling remained under pressure, since investors are still distrustful of a possible second wave of infections by COVID-19, as pubs, restaurants and bars will reopen on the 4th of July.
The information of this content has been taken from reliable sources which are detailed below:
1 – Editorial author’s own content.
2 – Part of the information retrieved from the Reuters news agency.