Should you invest in the pound?

Inviato il 1 December 2010 da Rod

Most analysts agree that if the EU sovereign credit crisis continues, the pound would have a certain advantage over the euro. In addition, the quantitative easing that, now, the United Kingdom, it is becoming less likely, the pound has an advantage against the dollar. Needless to say, the United Kingdom is experiencing its risks, but for now the focus is elsewhere and this should contribute to the fact that the pound should keep the head above water, for the first time in a long period.
Some people think that we should invest in the pound, by converting some of the investments previously made in euro or dollars. Considering the highly volatile currency markets and the fact that there is a real possibility that the strength of the pound has recently shown it can meet this currency, then it might be time to re-invest their money, or at least a part of it.
Please note that the prediction o f the evolution of exchange rates is very difficult now. The pound is better than other currencies, but experience tells to stay alert to possible danger. There are steps you can take to try to take advantage of investment opportunities that can be given away by the pound.
Some say to make the cover of their investment, ensuring a certain amount of investments made in euro or dollars in the hope that the market continues to improve. Experts warn that volatility in currency markets is above historical averages and the risk of weakening of the pound can not be excluded. Any change in perspective of the United Kingdom, in particular with regard to the quantitative easing, could push the pound to fall again.
With the debt crisis in Europe being worse, no one can predict how the pound will be affected.