British Currency Real-Time Streaming Daily and Historical Chart (Line, Candlestick, Bar, P&F)
Live Real-Time streaming chart of British Currency with adjustable line type, time frame/period, and optional technical indicators is available here.
Do you find this content useful? Like! Tweet! Recommend! Share!
The Pound Sterling as the British Currency
The Pound Sterling, commonly referred to as the Pound, is the official British currency not only for the United Kingdom but for its political dependent states as well. Indicated by the symbol L, the Pound is third most traded currency in the forex market after the US Dollar and the Euro and is represented by the expression GBP in this global trading platform. The source of origin of this currency is the Bank of England and its subunit is the penny, wherein 1 Pound consists of 100 units of penny, or a 100 pence. Therefore, while the coins of this currency are the different denominations of the penny followed by the alphabet p, the banknotes are preceded by the symbol of the Pound followed by the value of the note. This currency does not have any nickname as such but sometimes it is referred by the slang 'quid'.
The British Currency since the Time of the Anglo-Saxons
The Pound Sterling was introduced for the first time during the Anglo Saxon rule in form of the silver penny which continued as an integral part of the British currency till the twentieth century, although the quantity of silver in the coinage varied under the different rulers. Along the way in the seventeenth century, it was joined by gold coinage and further still paper money in 1694. As the main British currency, the Pound has had its crests and falls depending on the economic situation as well as the political climate and till date remains as one of the strongest currencies in the world.
Periods of Inflation and Deflation
Although the Pound Sterling underwent a number of changes in form of fluctuations and value through the reigns of different monarchs, the first blow to the currency was struck subsequent to the First World War followed by severe devaluation in 1931 courtesy of the Great Depression. While one aspect of the currency focused on its acceptance throughout the countries of the British Empire, a contradictory aspect was reflected in the Bretton Woods agreement in which the Pound underwent repeated devaluations due to its exchange rates against the US Dollar. This was followed by the inflationary period in the economy and it has been the decision of the country's political leaders that the value of the Pound should be determined as per the values of the Euro, the US Dollar and the other currencies in the world.
The GBP and the Bank of England
The Bank of England was established in 1694 and was responsible for issuing notes of the British currency for the first time soon after its consolidation. In the 19th century, it was this same bank which issued the notes as legal tenders and silver coins to make up for the existing shortage at that point of time and continued to build the economy with its policy throughout till the outbreak of the First World War. The Bank of England played a major role not only in the aftermath of the First World War but during the Great Depression as well when it devalued the British currency to cope up with the tough economic times. It is the Bank of England which during the present era is responsible for keeping a strict check on inflation and accordingly to monitor the movement in the value of the Pound.
Indicators Influencing the Value of the Pound Sterling
It is a well known fact that a particular nation's currency is deeply affected by the economic indicators like the GDP, the CPI and many others but because the British currency is one of the oldest surviving currencies in the world, it is affected by a number of other local and regional issues as well. The bank notes of this currency are probably the only ones in the world which can be used as legal tenders within their jurisdictions and this has an impact on the value of the currency. Another factor which has influenced the Pound over the years is the fact that UK has been a dominant force in the world and has been actively involved in the World Wars as well and this has had a significant influence in the value of the Pound.
Cross Rate Effect
The Pound Sterling is one of the highest valued in the world which can be freely bought and sold in the global forex market irrespective of the trader's location. While it is quoted against the US Dollar and the Euro most frequently, its value when quoted against other currencies is subject to fluctuation depending on the existing trend of the market.
The British Currency and the Forex Market
The performance of the Pound in the forex market can be judged through the fluctuation in its value when quoted against the US Dollar. As a trading pair, the GBP/USD has been oscillating around a particular value with just a few breaks above and a rare break or two below this level. This implies that the support levels to the Pound have not only held on strongly but have also prevented an upward rise in the value of the currency thus potentially becoming the new resistance levels. The Pound's standing in the forex market has been negatively influenced due to the economic slow down in Europe as well but it is believed to be emerging strongly in the forthcoming years irrespective of the performance of the Euro. Trading in Pound in the forex market could also be affected by the rising inflation in England but this is predicted by experts as being a temporary phenomenon which is not likely to have a bearing on the value of the Pound.
The Pound is doing well in the financial markets due to the better health of the British economy as compared to the on going slump in the Europe and this has been proven through its successful withstanding of several stress tests. This currency is further expected to maintain its good performance against the US Dollar as well thus prompting the bank of England to focus on more positive consumer reforms related to the finances.
Do you find this content useful? Like! Tweet! Recommend! Share!
ETF Trading Strategies Revealed - Fresh Signals and Ideas Daily
If you are looking for ETF trading strategies, this is the place to be. We provide investing ideas for the most popular ETFs in different categories.
Where to Invest Money? Now, Today, 2011, Safely, Great Returns?
Would you like to know where to invest money? Find fresh stock research, analysis and strategies, plus latest news, discussions and experts' opinions.
Written by: Goran Dolenc