Snowballing of the Pound

The pound is on the receiving end of some frantic ‘snowballing’ action in the currency exchange market.  Investors are widely selling the currency as the United Kingdom sits surrounded by concerns over the political situation.

With the Conservatives now just 2 points ahead of the Labour party, a hung parliament is even more of a risk.  A hung parliament is one where no political party is in a clear majority, making it harder to process policies and take action.

Given the already severely problematic nature of the country’s deficit, a hung parliament couldn’t come at a worse time – if it does come.  Right now, a quick and clear plan to solve the deficit needs to be put into place.

Oveall, investors are not exactly falling over themselves to get involved in Britain right now and in the short term the pound doesn’t look set to grow much.

Explore posts in the same categories: Economy, Finance, News Articles, Topical

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