Pound Continues To Go Downhill Worrying Economists
After the Brexit vote, the Pound performs poorly in the exchange market. The pound is now facing a downhill against US dollar and other major currencies. On Tuesday, the industrial trends for orders from the Confederation of British Industry (CBI) showed a positive improvement to reach -3 from -17. However, the economists are more worried about the bad news looming around the corner for the British government.
In the EU, the Brexit vote has resulted in a negative sentiment towards the UK. The anti-UK policy can make the EU punish the British government with a hard Brexit deal. This can create economic turbulence in the UK and it can also cause a major impact in the global market for the currency. Across the trading session, the Pound continued to face weakening.
The future policies and plans for the UK economy are still under ropes and they will be revealed by Philip Hammond in his Chancellor Autumn Statement. The concerns about Brexit have peaked all over the globe and it is expected that the Chancellor will take steps t do something about it. Everyone expects the Chancellor to first take damage control actions to protect the UK economy. Steps must be taken to keep the low-income households afloat while taking measures to improve the economy of UK by the end of 2017.
The strengthening of the US dollar has also resulted in Pound weakening against major currencies. The unknown policies of the Trump administration have also increased the nervousness surrounding the exchange rate of Pounds.
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