What about the economic forecast for the pound?
Hello. The latest pound and euro exchange rate is giving me a headache. After Britain has left the EU, the pound, as you know, experienced a major fall. What about the economic forecast for the pound: can it expect a rise or is it going to fall even more after Britain leaves EU for good? Is it worth exchanging pounds to euros now because of this frightening situation, or should I wait til the situation becomes more stable and hope for the best? Thank you in advance.
Lenda, thank you for the question. It’s true, everyone is nervously asking the same question. And we have a very specific answer: no one can predict what’s going to happen in the future, we can only speculate. All we can do is observe what is happening with markets, since currency/financial markets deals with new and unpredictable scandals all the time, which means that everything could change dramatically any minute. Let’s remember the public reaction to Greece situation – euro was falling, but it managed to recover, which was influenced by a number of different news. It’s the same with Great Britain - lots of things are unfolding and there is no way to know what’s about to happen. Besides, Britain only voted to leave, but hasn’t done it yet.
I would suggest analysing pound exchange rates throughout this whole period, then you’ll notice that it keeps on falling and rising, and there is nothing unusual about this activity. Nobody can tell you what awaits in the future, that’s why you should trust yourself and make these decisions on your own: some people will make worse choices, while the others will be more fortunate.
