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
Source: (Howes, 2016).
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
Licensed under a Creative Commons Attribution 4.0 International License.