GBP on the Slide

If you are a Forex trader then you will have noticed the value of Sterling has been on something of a downward trend over the last couple of days in quite a dramatic fashion. Its value against mainly the US Dollar and the Euro is slipping due to the imminent vote by the population of Scotland on whether they are to become an independent country.

Whilst for months it has been looking like the no vote was the most likely outcome of the vote, there has been, over the last week or so a swing in this vote with it now looking like, if several independent polls are to be believed, that a yes vote for independence is now looking like the outcome of this vote.

This potential yes vote for independence has spooked many investors in the money markets, and with scare tactics being used by both sides, this wayward and very large movement in the price of GBP against all other currencies is likely to continue for the next week or so until the outcome of the vote is known.

In fact it is being speculated that if the outcome is a yes vote then GBP, in the short term, could lose up to 20% of its value against other major currencies, and whilst this may have a knock on effect of making exports cheaper for UK based companies, it is not something those in power are hoping for.

If you are an investor in Forex then now is a good time to start locking in and making profits from this downward swing in the value of GBP, and many Forex Brokers are offering a wide range of currency pairings which include GBP on one side of the trade.

The biggest swings seen in regards to GBP has been against the US Dollar, for having been trading at around the £1 equals $1.70 mark not too long ago this exchange rate now stands at just £1 equalling $1.60.

So maybe you should seriously start looking to trade against Sterling when you are placing your Forex trades online, for in the coming week it could be the case that the downward spiral in the value of GBP is likely to continue, and as soon as the vote is known either a much larger drop in its value or even an amazing upward turn it the value of GBP may been seen.