British Pound collapses against EUR and USD, despite ‘Bidenomics’ data
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It’s been a disastrous few days for the British pound.
A look at this morning’s chart, which shows the pound fully crashing against the US dollar, is somewhat alarming reading as it continued to lose ground in the European market open this morning after starting its downward spiral on Friday last week.
In fact, the British pound has now reached 1.18 against the US dollar, its lowest level in over a year, and while the decline has been gradual over the past few weeks, the sudden further decline that began on Friday and continued this morning is a clear sign of tanking value.
The situation is almost the same when looking at the British pound against the euro. The pound fell to a low of 1.18 on Friday (the same value as it is against the dollar today), clearly showing that despite the economic problems in the Eurozone, confidence suddenly left the building for the pound late last week.
Yes, the UK economy has collapsed due to the current government blowing hundreds of billions of pounds over the last two years with careless abandon, and now the public are expected to pay for it with rising energy, fuel tax and interest costs. and a criminal economy crippled by government-ordered shutdowns, layoff plans, embezzled state-backed loans, multi-billion pound contracts awarded to investors based on Covid, and later Prime Minister Boris Johnson, who is about to leave office, constantly nailing his colors to the mast with Ukrainian flags decorating his office and constantly showing vocal opposition to Russia and its industrial base.
This has exacerbated an already existing tax problem and now the plumber has to be paid.
Inflation is at a 40-year high and the cost of living crisis in the UK isn’t just media propaganda – it’s real. Anyone who walks the streets of provincial cities sees food banks and dependence on charity in full force.
Yes, the US also contributed to the recent agenda narratives, but its economy is not faltering despite its high inflation. Industrial production remains high and the nation seems to be doing quite well despite the enormous challenges, hence the surprising strength of the US dollar in recent months.
After a year marked by internal Democratic dysfunction, Congress has suddenly passed a raft of laws in recent weeks that will help form the core of President Biden’s economic record before lawmakers face voters in the 2022 midterm elections.
In addition to the economic bailout and bipartisan infrastructure bill passed last year, Congress this month alone also passed a $280 billion measure to expand veterans’ health care, a $280 billion bill to counter China’s economic rise, and an inflation reduction bill focused on the climate crisis. , lowers healthcare costs and raises taxes on big business.
It seems straight out of the socialist playbook, which would normally be enough to scare off investors, but the pragmatic minds of the market have looked at Europe’s dire situation and compared it to the relatively productive US.
Yes, President Biden has garnered a low level of confidence from investment-savvy professionals and individuals, and his anti-Russia stance is almost as strong as Boris Johnson’s (although Boris Johnson takes the honor of being the most vocal). Biden has sent billions of dollars to Ukraine, but the economy is still rebuilding itself.
At the moment, the lowest point of the British pound is a serious matter in the foreign exchange market.
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