Accounting for nearly 13% of daily trading in the foreign exchange markets, the pound sterling is the fourth-most-traded currency in the foreign exchange market. As with any foreign currency, the British pound forecast is subject to a variety of economic and global factors:
The United Kingdom’s delayed withdrawal from the European Union has caused fluctuation and uncertainty regarding the value of the pound sterling.
High levels of inflation in a country can cause their currency to depreciate and force central banks to take action to combat increased inflation.
With the goal of the Bank of England to promote “low inflation and confidence” in the pound, the bank has policy tools to limit inflation.
The level of overall economic activity in the UK and its gross domestic product (GDP) are indicators of the strength of the British pound.
Adjusting interest rates helps control inflation but it can also cause economic disruptions due to increased prices across various industries.
Along with losses in consumer spending and production, measuring unemployment rates is a key indicator of a country’s economic prosperity.
The more capital that can flow into a country through domestic and international trading methods can increase economic gains.
Letting the experts at Bridge Capital X manage your foreign currency trading can help steer your accounts away from volatility and toward stable and profitable assets. Whether needing expert guidance or industry knowledge to enhance your trading accounts, Bridge Capital X has all the tools to execute precise trades based on analyzed data and market expertise