The rise of UK Sterling has continued to rise recently to circa 1.65 $ to the £. This is in stark contrast to the beginning of the year when Sterling was bouncing around the 1.45 mark.
This rise may be putting extra pressure on British exports to the United States (or other US$ currency based regions such as United Arab Emirates), but one must remember that the Sterling to US Dollar exchange rate is still not at the rate of 1.95, which was common over the past three years. British exporters could in many cases have a slight advantage over the export rates they may have planned on, which would allow profit taking or price reductions. The contrast is true of course for the UK’s sizeable imports: the effect of these higher prices is impacting some of the goods that British shop’s shelve.
These sizeable shifts in currency continue and some investors are losing and very occasionally gaining from investments in highly risky foreign exchange trading, which are provided by online companies such as FXCM. These should only be carefully considered after taking professional independent investment advice.
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