One could be forgiven for assuming that our more interconnected world is safer than ever, however this is far from being the case, the reality at hand. In fact, in some ways we are more at risk than ever. Regardless of if the risks posed come in the form of dangerous computer infections or dramatic men in power (or anything in between, for that matter), the threats are there.
In the financial industry and the foreign exchange market, for example, those threats often come in the form of dramatic international visits between people in power that result in haphazard randomisation of their nations’ currencies. This was precisely the fear that enveloped the GBP this past week, when US President Donald Trump visited the UK on an official visit. The anxiousness comes on the back of the president’s recent visit to China, and the drama that erupted on the back of the progression of that visit.
However, quite the opposite result accumulated after Trump left from his visit to the United Kingdom earlier this week. A relatively calm association, the US president met with UK Prime Minister Theresa May, expressing enthusiasm towards the idea of a US-UK trade deal post-Brexit. The GBP/USB pair remains on its pathway to strengthening, trading near 1.2690 over the last twenty-four hours. This strong position puts the GBP in an advantageous position going into the London open tomorrow.
The positive comments at the end of the US president’s three-day-long visit to the UK, topped off with a meal with Her Majesty the Queen, appears to have pleased pair buyers. This is especially impressive considering the uncertainty that surrounds the US-Mexico and US-China trade relations that have otherwise weighed doubt upon the greenback this week. While the position of the US dollar is decidedly rocky as of now, it puts the GBP in an overwhelmingly strong position, with the two coming together as a pair and performing strongly, GBP pulling USD to surer heights.
Brexit posed some big questions in recent months, throwing the balance of the GBP into chaos, and the nation into anxiety-ridden anticipation of how the currency would perform on the foreign exchange market for the remainder of this year (and even continuing into 2020). This week’s events signal a positive moment for the UK currency, as its positive performance against other high-performing currencies propel it up into some of its highest highs in quite some time.
Of course, the foreign exchange market is always awash with free-flowing movement, but at the present time the outlook of GBP is looking as bright as it has in a long while. Only time will tell how the currency continues to perform in the coming weeks, but if these past few days are anything to go by, it is likely to be a positive flourish
