The pound is currently trading near the lows of the month. It seems to be aiming for even lower values, so experts believe that it will continue its decline even in the near future.
According to analysts, the sudden decision of the Fed to reduce its rates did not affect the dynamics of the British currency. It only fell slightly against the dollar. On Monday, March 16, the pound also reached a new six-month low against the euro, amounting to 90.95 pence per 1 euro.
The price of the GBP/USD pair rose to 1.2327 on Monday, but could not stay at high levels, so by the end of yesterday, the pound reached a five-month low, trading near $1.2250.
On the morning of Tuesday, March 17, the GBP/USD pair declined to 1.2223–1.2224. Although the pair dropped (by a little), it managed to recover quickly.
Currently, the GBP/USD pair is trading in the range of 1.2229–1.2230. It is trying to rise even higher, but the attempts were unsuccessful.
Analysts believe that the current and subsequent fall of the pound is caused by the loss of its status as a protective asset, as investors prefer trading the dollar, the euro, the franc, and the yen. They believe that the current instability of the British economy affected the currency's position.
Aside from the critical situation with the spread of coronavirus, problems in Brexit, as well as the general anxiety in the financial markets, affected the British economy. As a result, experts are confident that at the next meeting of the Bank of England scheduled on March 26, the regulator will introduce additional stimulus measures, such as further rate cuts, resumption of quantitative easing (QE) programs, and asset purchases.
