A day after the shock US election result, sterling continues to increase in value against the dollar. On Thursday, the pound continued to gain further momentum, rising by 0.1% during todayâs trading.
The gains in sterlingâs value are good news for UK businesses who depend on imports. However, the biggest question is whether the poundâs appreciation will continue, and expert analysis suggests the change in the poundâs fortunes are not set to last.
Eric Theoret, an analyst at Scotiabank in Canada, stated:
GBP is quiet, consolidating within a relatively tight range, a relative performer against its G4 peers and most of the G10 currencies.
However, Theoret has concerns over whether sterling will continue to retain its strength against the dollar.
Forecast sites predict that sterling will continue to put up a strong performance during November 2016, ending the month with a 4.92% gain. However, the poundâs fortunes are expected to decline in December and early into the New Year.
Nevertheless, with exchange rates for the pound remaining low, some analysts feel that sterling might seem like an attractive investment, but despite todayâs appreciation, the UK currency looks set for a volatile time ahead.
GBP/USD traded at 1.2555 as of 18:11 GMT, with a high of 1.2585. Sterling opened on 1.2404 on Thursday.
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