The US dollar has soared in value as the British pound weakens following extended periods of political turmoil, low or negative economic growth, and tensions around the future of the UK markets following Brexit and the impacts of the Coronavirus pandemic.
Although a strong dollar might be a positive in terms of confidence in the American economy, the knock-on effect can damage global trade for industries that rely on USD as a primary exchange currency.
Further issues have emerged in the last few weeks with the appointment and resignation of Prime Minister Liz Truss, with a poor market response to a tax plan heavily weighted towards higher earners.
However, USD and GBP are different currencies from dissimilar economies, and their importance within international trade and forex markets is not comparable.
Pound V Dollar: The Basics
Historically, GBP has always been worth more than USD in direct trading. Still, the price of one currency…
