The British Pound is riding high at the minute, and with the state of the UK economy looking much stronger than it has for a number of years now, it look a sure fire bet that sooner than later GBP will rise to a value in excess of one Pound equally 1.30 Euros.
If you trade Forex online then you will of course be more than away of the flying away success of GBP in recent weeks, and there is a lot of belief out there that it will continue to grow and grow in value more so against the Euro than the US Dollar.
Probable Causes for an Increase in the Value of GBP
Let us now move onto the likely causes of the UK Pound reaching an exchange rate of 1.30 against the Euro, whilst this may have seemed highly unlikely just a few months ago, many commentators are predicting it will be only a matter of time until GBP reaches this new recent high.
Unemployment Falling – It was recently announced that unemployment is continuing to fall in the UK, and with the Government committed to getting this figure even lower, when the next set of employment figures are revealed we expect this to be another low figure and as such this may help GBP increase in value.
Interest Rates – There is no rush to raise interest rates in the UK, and when the Monetary Commission next sits we are expecting the rates to remain unchanged, in fact not matter whether they choose to increase or keep interest rates the same, one or other of these two announcements will possible see the Pound gaining a little more value against the Euro!
UK Tax Changes – With Scotland voting to remain as part of the UK, it was announced by the Prime minister of the UK that England should now have their own independent set of rules regarding taxes charged to businesses and citizens, this announcement came soon after the no vote and as seen as a way of keeping English voters happy due to all manner of incentives being offered to Scotland in regards to the way they manage their finances.
It is therefore expected that a new set of laws and regulations will be put into place whereby England can set different rates and taxes for people living in that part of the UK, and when these changes tart to kick in this will of course have another affect, and more than likely a positive one on the value of GBP.
General Election – The day is fast approaching when there will be a General Election in the UK and as such no matter what way the vote goes and no matter what party secures a victory, as soon as the result in known GBP is going to move in either a positive or negative way not only against the Euro but against all other major currencies, who will win the next General Election is of course anyone’s guess!