Capital Way Review: Will The GBP Continue to Weaken Against the Dollar?
By: Capital Way
The battle with these two exceptional currencies is begging the question, "What will happen?". In this review, Capital Way evaluate the pair to try and determine what the future holds. With this insight, you will be able to get a rough idea of what to expect for the future of investing in this forex major.
According to Alex Madison, the core factors that impact on the trading value of currencies against the USD dollar is the economic state of the country and the interest rate differential. The interest rate on the dollar, as analysts predict, should fall today for the first time since 2008 to 2.25%, although the interest rate on the pound is merely 0.75%. So regardless, investors will sell off their pounds to acquire the dollar with higher interest rate.
Forecast For The Coming Months
The future of the GBP isn't indisputable yet, though the signs are pointing to a weaker currency altogether. This uncertainty will hover around the British economy for as long as it takes the country to rejuvenate back to its feet. After Boris Johnson's election as UK Prime Minister, the Boris 'No Deal' policy is growing, working only in favour of the USD in terms of interest rates.
Many investors have asked Capital Way if it's wise to invest in GBP during this unfathomable crisis. But in all honesty, there is no right answer. Trying to invest in a falling currency is like trying to save a sinking ship. It is a risky venture with a slim chance of success. With the wrong circumstances, you will be making a dreadful mistake. Buying pounds is an uncalculated risk compared to buying when the trends are bullish.
How Does A Trading Algorithm Work In Currency Fluctuation?
An intraday algorithm, usually referred to as day trading, operates in minor movements on the market, commonly expressed in a 0.1% change. The large counterpart is nothing of interest at all. However, here in Capital Way, our algorithm operates 24 hours a day and performs enormous transitions of both small to medium transactions, closing in small profit that accumulates at the end of the month to outstanding ROI.
* This Capital Way review does not constitute a recommendation for investment and does not replace financial advice.