Market updates and forecasts

Get the latest economic news from ForexMart, including updates on the financial market, central banks' policy announcements, financial indicators, and other relevant news which can have an impact on the industry.

Disclaimer:  Information provided here to retail and professional clients does not contain and should not be construed as containing investment advice or an investment recommendation or an offer or solicitation to engage in any transaction or strategy in financial instruments. Past performance is not a guarantee or prediction of future performance.

The pound has fallen to a historic low


September, 26 2022
watermark Economic news

On Monday, the British pound collapsed by almost 5% against the dollar – to a record low of $ 1,0384. Subsequently, the currency recovered somewhat to the level of $1.0882.


Analysts note that the current collapse of the pound was the biggest intraday drop since March 2020, when the markets were panicked due to the outbreak of the COVID-19 pandemic.


The UK currency depreciated after the country's Finance Ministry promised to continue tax cuts, which will affect individuals and legal entities and increase the budget deficit. This has raised fears that the new policy will lead to a sharp increase in inflation and public debt. 


«The collapse of the pound shows that the markets do not trust the UK. Now the pound is a step away from parity with the dollar, and the situation will only worsen further,» said Jessica Amir, a strategist at Saxo Capital Markets.


In total, this year the British pound has already fallen in price by 20% against the US dollar. Such a drop even surpassed the collapse that was observed after the vote on the country's withdrawal from the European Union (Brexit) in 2016. Then the UK currency depreciated by about 16% over the year.


Feedback

ForexMart is authorized and regulated in various jurisdictions.

(Reg No.23071, IBC 2015) with a registered office at Shamrock Lodge, Murray Road, Kingstown, Saint Vincent and the Grenadines

Restricted Regions: the United States of America, North Korea, Sudan, Syria and some other regions.


© 2015-2024 Tradomart SV Ltd.
Top Top
Risk Warning:
Foreign exchange trading carries a high risk of losing money due to leverage and may not be suitable for all investors. Before deciding to invest your money, you should carefully consider all the features associated with Forex, as well as your investment objectives, level of experience, and risk tolerance.
Foreign exchange trading carries a high risk of losing money due to leverage and may not be suitable for all investors. Before deciding to invest your money, you should carefully consider all the features associated with Forex, as well as your investment objectives, level of experience, and risk tolerance.