ere is the first part of my Sterling Q1 2021 Forecast: Starting to Look a Better Prospect. The Sterling Exchange rate has had a few good days over the last week. There were worries in Asia concerning the impact of the Chinese economy, and the Bank of Japan started the month with some negative growth indicators. That caused markets to reevaluate and send stocks lower. Over the last several months, the Japanese have picked up, as the rest of the markets have.
Traders have been nervous about the response of the United States to the situation in Iraq, but the Japanese have done very well, especially given the weakness in the American stock market. This means that they are now trading very heavily. This only means that one currency is now stronger against all others.
The US market has had its worst week since the global recession, and this has only reinforced the view that the market is no longer an equal player in the world. In fact, the US is now seen as a world leader in trading, while China is now seen as being second best. This has only reinforced the view that the American economy has a lot riding on this one trade.
Now let’s take a look at the Sterling Q1 forecast. We can see that Sterling has strengthened by roughly two points since last week, which is rather strong compared to other market indicators. It looks like the market may even go up another three points in the next few weeks. In fact, there is a clear pattern that the stronger markets always gain more value, while the weaker ones lose value. If you want to make money in the markets, you need to focus on the stronger markets!
A key point to note is that there are so many parallels to what is happening in the stock market at the moment. First, there are worries about the slowing Chinese economy. China has been the main driver of the markets for years, and if it weakens it will have a significant negative effect on global trading. The European markets have also recently been impacted by Greece and Spain struggling to keep their heads above water, with Portugal is suffering the same problem. All of these problems mean that the interest rates in the region are going to go up, creating room for risk-takers.
As the UK economy recovered from the global financial crisis, we saw it pick up steam and we saw the pound strengthens against major currencies. But it is a different story now, and traders are worried that the recovery is not as strong as they expected. In fact, many believe that the Bank of England’s quantitative easing programme may backfire and the UK economy suffer a sharp slowdown. This is quite unfortunate as the UK has been one of the main proponents of quantitative easing and this sort of policy has helped to get the economy moving along, without causing major problems.
Sterling Q1 forecast, in fact, actually shows that traders have become a lot more pessimistic about the UK’s performance in the global markets. This should come as no surprise, given the huge drop in oil prices over the last year. The sharp slowdown in the Chinese economy has also had a significant negative impact on trading, as well as other commodities like gold. While the Bank of England has released a statement that states they expect the economy to recover in the next few years, the signs are not good.
With this in mind, we can clearly look at the Sterling Q1 forecast and see that the market has been affected by several major factors over the last six months or so. However, all of these problems seem to be taking place against a backdrop of slower growth in many other major economies around the world. So the chances of major US trade deficit problems in the present period, coupled with the slowing of China’s economy, are not as great as they were at the start of the year. What this means is that Sterling Q1 prediction, although looking gloomy, should be considered as something of a long-term neutral trend. Sterling is likely to just continue on this course, and looks to remain in