August 07,2009. British Currency falls to $ 1.6752 on concern that recession is deeper than earlier anticipated. Bank of England is reported to increase its plan of Asset purchase.
Pound rose to $ 1.7040 on 5th August. Now some people are talking about the devaluation of currency in near future. What exactly is going on in financial decision makers mind is very difficult to under stand. One day Pound jumps to months high on the news that some banks have gained profit in billions in 2nd quarter, and economy is reviving and property markets have taken new start and so on.
Investors starts jumping to switch over their investments in pound by accepting losses in other currencies,commodities or equities and all of a sudden another bombshell is thrown that recession is not over or they have underestimated the depth of current recession period.
Some time back one world class economists has said that the second phase of current recession will began in year 2010. Currency traders, Investors& Speculators are advised to be very cautious and should not jump on to conclusions after reading or analyses of only one report. Small investors should sit on the boundary wall to avoid unnecessary losses.
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