LONDON, June 27, 2016 /PRNewswire/ --
For weeks, analysts have been keeping a very close watch on the financial markets, and with the recent outcome of the Brexit vote, investors and traders worldwide are now taking advantage of the movements in the British pound (GBP) to the euro (EUR) and US dollar exchange rates.
On the 23rd of June, Britain voted in favor of withdrawing from the European Union. 23Traders, a leading binary options broker, had speculated that the Brexit would have a negative impact on the GBP and since forex exchange markets hate uncertainty, there has been a strong decline in the value of the GBP, particularly against the EUR.
In addition, the negative sentiment around the British pound is showing few signs of abating, with investors fearing that the recent Brexit could cause the UK to enter another recession. As the sterling continues to decline, a steep rise in the cost of imports is likely to send inflation spiraling, which will then force the Bank of England to raise interest rates. In addition, 1.5 percentage points are likely to be knocked off the GDP growth in 2017, which will also negatively impact the growth rate in the country.
According to Daniel Diehl, the head analyst at 23Traders, the GBP is likely to bear the brunt of the major adjustments that will now take place in Britain following the recent Brexit. He explained, "The pro-Brexit outcome has pushed the GBP lower against other major currencies, such as the euro and the US dollar. Trading binary options on these currency pairs enables traders to profit from these declines since this form of trading allows traders to take advantage of markets movements, whether they are moving in an upward or downward trend."
Diehl went on to say, "Since the discussion of the Brexit started in December, we have seen a decline of 12.5pc in the GBP against the euro and a decline of 6.8pc against the US dollar. In fact, in mid-February, after Boris Johnson's decision to join the Brexit campaign, the pound fell as low as $1.38." He went on to explain, "The traders at 23Traders have been able to profit on this consistent decline in the GBP and while the currency is likely to stabilize in due course, our traders can continue to maximize their profits on this downward trend. In addition, as the GBP stabilizes over time, 23Traders can then easily change their trading strategies to meet this market movement. Either way, it is a win-win scenario for traders."
23Traders is one of the leading providers of online trading services, offering a variety of tradable assets to their clients, including currencies, stocks, commodities and forex. The 23Traders brand is a member company of Hermes Ventures Limited. The 23Traders primary goal is to provide a flexible and powerful trading platform that enables both novice and experienced traders to trade with ease and to maximize their investment objective, coupled with expert advice and support. 23Traders is the brainchild of 23 professional traders from across the globe who collaborated for years to design the ultimate trading service.
For more information on 23Traders and its trading platform, feel free to visit http://www.23Traders.com