Latest Forecast on the Pound Sterling Movement
The Pound Sterling has been volatile in the past year, fluctuating between highs and lows due to various factors such as political uncertainty, economic growth and Brexit negotiations. In this article, we will explore the latest forecast on the Pound Sterling movement and the factors that could potentially impact its value.
Political Uncertainty and its Effect on the Pound Sterling
One of the main factors that have affected the Pound Sterling movement in the past year is political uncertainty. The resignation of former Prime Minister Theresa May and the appointment of Prime Minister Boris Johnson has caused significant uncertainty, particularly with regards to Brexit negotiations.
The Pound Sterling has responded accordingly, with its value fluctuating in response to the developments in the Brexit negotiations. For instance, when talks between the UK and the EU seem to be progressing well, the Pound Sterling typically experiences a rally. Conversely, when talks falter or when a no-deal Brexit appears likely, the Pound Sterling typically experiences a slump.
Looking ahead, much of the Pound Sterling movement is likely to be influenced by political developments, particularly those relating to Brexit negotiations. The likelihood of a hard or soft Brexit, for instance, is likely to impact the Pound Sterling significantly, with a hard Brexit likely to cause a slump in the currency’s value while a soft Brexit is likely to cause a rally.
The Impact of Economic Growth on the Pound Sterling
Another important factor that could potentially impact the Pound Sterling movement is economic growth. Historically, a strong economy has been correlated with a strong currency, and vice versa. In the UK, economic growth has been fluctuating over the past year, with a GDP growth of 0.3% in the three months to November 2019, and possibly more fluctuations with the ongoing pandemic in 2020.
Going forward, economic growth is likely to be a key factor that impacts the Pound Sterling, particularly in light of uncertainties in the global economy. The performance of the UK economy relative to other countries will be closely watched, with any significant differences likely to impact the currency’s value.
The Role of Brexit Negotiations in the Movement of the Pound Sterling
Finally, Brexit negotiations are likely to play a significant role in the movement of the Pound Sterling going forward, particularly as the deadline for negotiations nears. With the EU and UK in the midst of contentious negotiations over trade, fishing rights, and other key issues, the Pound Sterling is likely to respond to these developments accordingly. A no-deal Brexit, for instance, could significantly impact the value of the Pound Sterling, causing it to slump. Conversely, a successful negotiation could cause the Pound Sterling to rise in value.
In conclusion, the Pound Sterling movement is likely to be impacted by a range of factors in the coming months, particularly with regards to political uncertainty and economic growth. As the Brexit negotiations continue, the Pound Sterling is likely to respond accordingly, making it vital for investors and traders to keep a close eye on developments in this area.