Sterling continues to rise in the Forex market. The clear weakness of the dollar in comparison, has allowed the other currencies in the market to take the lead in trading.
The good news for the British currency continues to come. Some analysts are keeping an eye on the pound’s performance. But the steady steps that the UK has begun to take towards a path of early recovery have generated confidence among traders and investors.
Although the Brexit and the clear British economic recession continues to be a factor. Investors have already adapted to this minimal feeling of uncertainty that the UK offers.
GBP Hits 5 Month High to $1.32
Pound Rises as Dollar Falls
There is a phenomenon that has begun to be seen in the Forex market, since the USD began to perform negatively against other currencies.
As a result, all trades were redirected to other currencies that promised more Bitcoin Trader security and better returns for investors and traders. And this time around, the GBP continues to rise thanks to this phenomenon.
The pound rose in Friday’s trading session. This kept most investors out of the decision making process for the British currency.
Another factor that has allowed the GBP to continue to rise is the cost of borrowing in Europe. These costs have followed the U.S. Treasury bonds this week. They have been driven to new highs by a flood of debt issues in the American country.
In addition, next week, Britain is expected to release inflation data on Wednesday and retail sales on Friday, and both are expected to be lower. This could lead to further relaxation by the Bank of England, according to Reuters analysts.
However, new cases of Coronavirus are on the rise in some parts of the world. This has led the British government to quarantine many tourists returning from holiday. Affecting the island’s economy equally.
The dollar closed Wednesday with a negative trend
Quote of the pound to date
At the time of writing, the pound sterling was trading at 1.3084 against the dollar. Demonstrating its clear bullish behavior against the dollar.
It has risen almost 7% in the last three months against the US dollar, almost exclusively due to the weakening of the American currency. And it seems that the pound continues to rise.
The British pound continues to rise in the Forex market, due to the fall of the dollar in its operations.
Britain cannot afford another fall in its economy. Not even one induced by the Coronavirus, after registering a 20% fall in the second quarter GDP.
The hope is that October will see the end of a licensing scheme that has allowed millions of people to keep their jobs. This with the goal of stabilizing the British economy again.
Finally, the Prime Minister, Boris Johnson, ordered the reopening of the economy in England. Saying that an increase in infections that caused caution two weeks ago had stabilized.
Could this be a sign of clear improvement for the British currency?