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Is GBP about to Increase in Value?

British MoneyOne thing that every single Forex trader will have noticed in the last couple of weeks is the GBP has been falling in value against lots of there major currencies. Most noticeably it has dropped in value against both the US Dollar and the Euro.

However, if you have been looking at the long term value of GBP in the last couple of months you will also have noticed that the value of GBP against those two particular currencies has been swinging in both directions, in fact against the Euro it as only a couple of weeks ago the rate of 1 GBP to 1.42 Euros.

Many Forex traders have realised that whilst GBP has been dropping in value it does seem to be bouncing back in value and we are aware that many traders are now placing their Forex trades in such a way that they are expecting GBP to bounce back up in value.

Whilst it is unlikely that GBP will increase dramatically in regards to its value to the US Dollar due mainly to the US increasing their bank base interest rate recently, that is not the case with the Euro, and as the Euro Zone is as unpredictable as ever you may be considering placing a few Forex trades in which you could pair up GBP and the Euro in the hope that the GBP increases in value.

Take a step back and look at the current financial climate for you will see that there is nothing major happening in the UK which is forcing the value of GBP down and that is a possible indicator that its recent drop in value against the Euro is a blip and could soon start to rise again.

In fact, this very morning GBP is on a slight rise in value against the Euro and that is possibly going to be a trend in the week ahead. Just make sure you are aware of all of the financial indicators and data that are going to be released next week by both the UK and the Euro Zone as those sets of data and indicators will determine the value of those two currencies.

If you are something of a low risk type of Forex trader then you can of course opt to steer clear of some of the more volatile currencies, however currently there are no currencies in trading that are guaranteed to move only marginally in value against any other currency!


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