For the past two years, the pound has been experiencing some difficult times in terms of its value against the dollar and other currencies. Immediately after the controversial referendum on Brexit, the value of the pound fell sharply, and with no clear path laid out so far on how to proceed, the pound is as volatile as ever. This is not everyone loss though.
Since June 2016, imported goods in the UK have become more expensive. Exports from the country, on the contrary, have fallen in price. It is worth clarifying though that everything is a lot more complex than it seems. British automakers, who are some of the biggest exporters in the UK’s industry, are importers themselves, having to constantly buy raw materials such as oil or copper in order to properly function. The pound has been experiencing a couple of turbulent weeks recently, having risen as high as $1.3383 last Wednesday, after parliament rejected the notion of a no-deal Brexit, after striking a recent low just above $1.30. These fluctuations are where all the money is at, and once you start understanding what will happen next, no one can stop you. This is where forex brokers like BronzeFX come in, without which, trading currencies on the world largest liquid market would be impossible. With a registration process as easy as it gets, anyone can start trading at their earliest convenience
Since 1992, the pound sterling has been circulating freely in the foreign exchange market, which means that traders – buyers and sellers – are the ones determining how much this currency is worth. When a pound rises in value, more currency is bought. And when it goes down, it is sold. This is the simple mechanism by which the foreign exchange market has reached a whopping $5 trillion worth of assets being traded every day. Among these traders are both rookies and veterans alike, who, under the right circumstances, see their bank account digits soar from 3 digits up to 5 and more.
Amid all the chaos and confusion that Brexit has been causing so far, remarkably, the pound sterling has been one of the best performing major currencies in the world against the US dollar. While it has not fully recovered from its June 2016 Brexit announcement, it has gained significant ground as traders reckon the risk of a no-deal Brexit has been avoided.
Leaving the UK without a deal with the EU would undoubtedly cause a long-lasting economic downfall of the British economy and the pound. Now that a vote has been cast in favor of avoiding this outcome, traders are now speculating as to what the pounds further activity will be like. It is moments like these, the calm before the storm, when people have the opportunity to put their money to work and see their bank accounts light up.
In recent years, professional traders have been focusing more on policy than on economic data, which in many cases allows for faster trading and faster price changes. Right now, the pound is experiencing the exact kind of volatility that traders like to see, one that brings the potential for ludicrous amounts of profits.
The trading game is one that requires wits, patience, confidence, intuition, decent knowledge about recent and upcoming political and economic events, and, of course, a little bit of luck. None of these are hard to obtain, which is why it is the duty of any man or woman seeking to obtain financial freedom and independence to, at the very least, give it a shot and see how things go. If you fail, you will know that you have tried. If you succeed, then your life will never be the same.