I’ve been asked lots of questions as to how to determine the next moves in GBPUSD.
There have been many arguments for a bottoming out at the current levels, as well as for a continuation given the strength of the downward move experienced post-Brexit.
In this article, I’ll try to get a handle on possible outcomes, by looking at some fundamental indicators and see where they point to for sterling over the next couple of months.
The longer-term perspective will be more difficult to gauge, since we are still in a state of flux, as long as the political situation hasn’t been clarified. By that I mean the particular details around trade, and how future goods flows will be negotiated between the UK and its future trade partners.
In this article, we will start out by analysing domestic output and follow up next week with other economic factors.
But first let’s take a look at Sterling vs the US Dollar over the last 60 years:
Post a Comment