Story Behind Fall of Pound Against Dollar and Euro

Past has shown a changing trend in the open market where Sterling falls down against euro. The falling trend was astonishing even after a rise in UK interest rate that always elevated sterling value but this time financial analysts were amazed at the falling trend when pound has fallen 1.7% against dollar and 0.8% against euro.

The effects of falling pound rates give rise to imports and leaves UK with an impression of not a good place to invest. Previous year, UK has shown an attractive record in export business by giving an income of 87 billion pounds and proceeded with another boom with 338.9 billion pounds. According to a forecast made by IMF, the European states will face a fall of approximate 1.5% by 2030 and this fall will sweep out the Britain GDP.

According to financial analysts in order to support the falling rate of pound, successful negotiation strategies with the EU should be made immediately. As Jeremy Stretch explained that, “the rising interest rate in UK should be validated otherwise no one can revoke the falling trend of pounds.”

Another reason behind the fall of pound rates is predicted to be the strong background of dollar which is continuously supported by high revenues generated by high profile companies. Research reports have shown that the fall in pound rates started during the recent month and it is supposed that to rise the pounds rates, financial experts should modify their strategies against the EU.

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