UK Interest Rate Rise Unlikely – For Now

January 15, 2016
UK Interest Rate Rise Unlikely – For Now August 17, 2018 Clive Nelson

interest ratesIf you are a UK Forex trader then you will no doubt have been pinning your hopes on a rise in interest rates in the UK for quite a time now, and as the UK economy has been doing exceptionally well recently many traders were convinced it was going to be just a matter of time before the interest rate in the UK was increased.

However, after something of a very volatile week of trading on the money markets and an announcement by the Bank of England that the recovery in the UK was not as strong as had been hoped that has resulted in any chance of a rise in interest rates quickly fading.

In fact many traders have had something of a successful week, for the value of GBP against the Euro and the US Dollar in particular has been dropping quite noticeably and quite a lot of trades have been pairing up both GBP with those other two currencies.

The Governor of the Bank of England has come out and publically stated that the chances of an interest rate rise is negligible for the very near future, and as such as a Forex trader that information is something that you should be using when deciding just which currency pairings to place.

Whilst the Euro zone is nowhere near as strong as it once was, thanks to a money printing exercise the Euro has been making gains in regards to its value and many commentators are saying that the Euro has levelled out again the Pound and will not strengthen in value further.

However, the opposite is being said about the USD versus the Pound and as such many investors are pinning their hope and their Forex trades on the value of the USD growing stronger in the next few weeks.

The fact that America has recently just increased their bank interest rates is the reason the USD has been strengthening in value against most other currencies, and many speculators are tipping the Dollar will get down to as low as $1.40 to £1.00 sooner rather than later.

However, whether that will happen is of course anyone’s guess, however as a Forex trader you are always going to be able to try and successfully second guess the money markets and place your currency pairings on any two currencies of your own choosing.

About the Author

Clive Nelson

Clive Nelson Author

Hi, my name is Clive Nelson and welcome to Traders Bible. Just to tell you bit about myself…I have been trading FX and binary options for the best part of 10 years now. After graduating with honours in economics, I began working for an investment bank in New York as an assistant trader before working my way up. After a few years, I went on to work as a broker in London, England and then eventually came back to the U.S to work in a hedge fund, where I manage $800 million of my clients’ investments. There have been times over the course of my career where I’ve had to take a hit, but I’ve accepted that losing is part of the game, it’s a learning curve. I’ve learnt from my mistakes and you don’t have to make the same errors I did. A lot of my education came from when I was a broker and this is why I’m here to tell you that Traders’ Bible offers you the foundations of how to become a great trader.

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