Those who make a point of following currency exchangexchange-related news will likely not need to be told that the British Pound has not fared well in recent times. In fact, it’s fair to say that little good news can be found related to the performance of the Pound recently. A series of repetitive, volatile swings in pricing earlier in the month have left investors somewhat rattled. The Pound has consistently performed poorly against the dollar recently, mainly due to strong economic indicators in the US and continued instability throughout the European Union and the United Kingdom at large.
That being said, it is also important to note that the British pound has been unable to hold value against the EU dollar as well. Earlier in April, the pound was unable to shake investor worry and continued to slip well below expectations. This continued poor performance resulted in a chain reaction of slides against global currencies, including the Hong Kong Dollar and the NZ Dollar. The pound also performed poorly against the Australian Dollar.
Although the month began in a rather turbulent fashion, recent news is far more encouraging. Many analysts are now confident that the downward trajectory of the British Pound has been all but abated. Also, it is important to note that dubious signals related to the strength of the US domestic economy have caused the American Dollar to slide relative to the pound. Neither nation, it seems, has much to be thankful for when it comes to long-term optimism. However, it will be quite interesting to observe precisely how the looming threat of Brexit continues to influence the value of the Pound. After last year’s rather mundane period of sedentary activity, recent global politics have once again swung FX markets into action and ensured that traders are on they toes. For those who are considering whether or not now is, indeed, the time to reconsider investment in the Pound, a growing number of experts are adopting buy positions on the currency. The outcomes of big bets on the currency exchange will likely be revealed in the upcoming weeks as the currency moves towards stability.