Economics

Pound to Foreign Exchange Ratio Falls

Pound to foreign exchange ratio falls in response to the UK membership of the European Union referendum June date being set. The Daily Mail reports on the HSBC claiming a Sterling collapse if Britain were to leave the EU. However, slightly picked up in response to a rise in the UK’s GDP and outperformed G7 rivals. Pound Sterling Live reports there is relief for the pound as GDP data comes in. Figure 1 shows the Pound Sterling exchange with the US Dollar over the years and currently it could be the worst monthly close in over 30 years.

Figure 1: Pound Sterling Again the US Dollar

Long-term history of the pound to dollar exchange rate

Source: (Howes, 2016).


Resources

Duncan, H. (2016). Now HSBC ‘talks down the pound’ by claiming Sterling would collapse if Britain left the EU. Daily Mail. Retrieved [26/02/16] from <http://www.dailymail.co.uk/news/article-3463157/Now-HSBC-talks-pound-claiming-Sterling-collapse-Britain-left-EU.html>.

Howes, G. (2016). British Pound Finds Relief as UK GDP Data Confirms UK Still Outperforming G7 Rivals. Pound Sterling Live. Retrieved [26/02/16] from <https://www.poundsterlinglive.com/gbp-live-today/3819-relief-for-pound-as-gdp-data-comes-in>.

Howes, G. (2016). Can the British Pound to Dollar Rate Bounce From Here? Pound Sterling Live. Retrieved [26/02/16] from <https://www.poundsterlinglive.com/gbp-live-today/3798-will-the-pound-recover-against-the-euro-and-us-dollar>. 

Featured image supplied from Unsplash.

Copyright © 2016 Zoë-Marie Beesley

Creative Commons License Licensed under a Creative Commons Attribution 4.0 International License.

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