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Is the pound facing an existential crisis?


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Pound v Dollar

Kamal Sharma, a foreign exchange strategist based in London said: “Sterling's fall from grace has been epic given last year's euphoria and in many ways has caught the investor community by surprise.

“This has resulted in a confusing communication strategy: hiking rates against a sharply slowing economy is never a good look for any currency.”

The Bank of England continuing to hike interest rates won’t be enough to rescue the pound, strategist Kamal Sharma said in a note.

The pound has been on a steady decline since June 2021 versus the dollar.

Is ‘Politicization of policy’ undermining the pound and is the pound the third-worst performing major currency this year ?

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On 03/06/2022 at 09:12, MongiIG said:

Pound v Dollar

Kamal Sharma, a foreign exchange strategist based in London said: “Sterling's fall from grace has been epic given last year's euphoria and in many ways has caught the investor community by surprise.

“This has resulted in a confusing communication strategy: hiking rates against a sharply slowing economy is never a good look for any currency.”

The Bank of England continuing to hike interest rates won’t be enough to rescue the pound, strategist Kamal Sharma said in a note.

The pound has been on a steady decline since June 2021 versus the dollar.

Is ‘Politicization of policy’ undermining the pound and is the pound the third-worst performing major currency this year ?

Has the European migration back triggered the pound fall? Did Brexit come to late? Is the current migration, labour needs, integration and sentiments just a few factors that balances major FX pairs? There will be times when places will end the constructions started decades ago and other places will still be under reconstructions for many years ahead leading to a possible zero rate of unemployment, is it known the bottom while the movement and markets movement are influenced by negative news?   

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