• About Us
  • Authors
  • Currency Charts
  • Live Exchange Rates
  • Contact Us

Exchange Rate Forecast

Exchange rate forecasts and foreign currency news

  • British Sterling
  • Euro
  • US Dollar
  • Australian Dollar
  • Canadian Dollar
  • Brexit News
You are here: Home / British Sterling / Global downturn as market fears dominate headlines

Global downturn as market fears dominate headlines

February 12, 2016 by Joe Wright

Global downturn as market fears dominate headlines

Sterling exchange rates continue to slide?

Pound Sterling - GDP exchange ratesThe value of the Pound has been undermined so far in 2016 due to the uncertainty surrounding the forthcoming EU referendum, leaving the Pound outperformed by most major currencies since the turn of the year. A weaker GDP forecast, dovish comments from the Bank of England along with a widening trade gap between the UK and the rest of the world have taken their toll on Sterling, and anyone looking to sell Sterling may wish to do so sooner rather than later as the UK’s continued membership within the EU is at threat to the Pound’s strength and the global downturn and European bank stress apply pressure to the ‘open economy’ of the UK.

Personally I cannot see Sterling improving in the short term future as the currency is being weighed down by both problems at home and abroad, although should we see an upturn in global markets I believe the Pound will receive that news positively and we could see a return to levels we saw at the end of last year.

In other news… Yen Surges as US Dollar wanes

Yesterday we saw financial markets dominate the headlines once again as fears over the global downturn created further volatility in equity markets and foreign exchange rates. Arguably the most notable movements yesterday occurred over in Japan as the Nikkei plunged 5% as the US Dollar slid to 15-month low versus the Japanese Yen. This has been the greenback’s worst week against the Japanese Yen since 2008 as concern within the banking systems coupled with fears over the global economic slowdown have caused investors to seek safe havens, with the Yen traditionally being considered safe territory along with the Swiss Franc and Gold for example, with the precious metal strengthening by 5% yesterday and hit a one year high.

Filed Under: British Sterling Tagged With: EU Referendum, Gross Domestic Product (GDP), Pound Sterling weakness, USDJPY

The information on this website is provided for information purposes only. It does not constitute advice to any person on any matter. Every reasonable effort is made to ensure that the information is accurate and complete but we assume no responsibility for and offer no warranty with regard to the same.

About Joe Wright

Joseph Wright brings a wealth of experience on the currency markets. He has worked in a number leading financial services organisations over the last seven years - working within a range of products including foreign currency exchange, equities and derivatives.

Recent Posts

  • Sterling finds support but unlikely to make any significant impact in the coming days May 9, 2018
  • US Dollar hits 5 month high against Sterling May 2, 2018
  • Sterling exchange rates at the mercy of political developments May 1, 2018
  • Pound weakens as political uncertainty once again raises its head May 1, 2018
  • Will Mario Draghi’s speech impact GBP/EUR? April 26, 2018

Live Exchange Rates

Archives




Copyright © 2021 — Currency.co.uk • All rights reserved. • Exchange Rate Forecasts • Privacy Policy •

We use cookies to ensure that we give you the best experience on our website. By using this site you agree to receiving cookies.I agreeRead Privacy Policy