Understanding The UK Currency Market
More and more entrepreneurs are encouraged to set up their businesses in the uk. Start-up companies are starting to breed like mushrooms everywhere mainly because of the responsive market in the UK along with the nation's strong economy. UK's stable economy is primarily attributed with the unwavering stability of the UK currency. The economy of the UK is ranked fifth in the exchange rate market. London, the capital of United Kingdom, is noted to be the world's financial center beating the cities of New York, Hong Kong and Singapore
Over the years, the UK currency has faced a lot of controversies as well as political and economical issues. Just recently, there was a big debate on the abolishment of the pound sterling, which is UK currency's official monetary unit. A resolution was raised for UK pound sterling to be completely eliminated and join the Euro currency. It was on the seat of British Prime Minister Gordon Brown that the public referendum was pledged.
The Chancellor of the Exchequer, the minister that is accountable for financial and economic matter, run several tests and research on whether or not the UK currency should join the Euro. Finally, the government came to a decision that it was not yet the right time for the UK currency to join the Euro.
The primary reason why independence was granted to the UK currency is the fluctuation of UK house prices. The public also opposed the joining of the UK currency to Euro as attributed to the number of opinion polls that was documented during that time. The single currency proposition is still alive and would continue to be an ongoing issue for the UK currency.
But with the good uk rate that the nation is experiencing nowadays, the government and its people are confident that the UK currency would remain stable and strong. 2006 marked the highest coefficient of variation percentage of UK rates to USD currency. It managed to hit C.var value of 3.79% with an annual average exchange rate of $1.842 USD to £0.5435. The lowest value of the USD to UK currency was way back in 2002 and in 1993 when $1.501 is equivalent to £0.6664.
In terms of comparison to Euro currency, the lowest coefficient of variation of Euro currency to UK currency was way back in 2006 where C.var value was as low as 1.11% with UK rates reaching £0.6821 for every €1.466. Last year, 2007, C.var value of UK currency to USD reached 1.97% with UK rate at £0.4999 for every $2.001 USD. Compared to Euro currency, ukrate was £0.6848 to €1.461 with a C.var value of 2.40%.
If you are gearing up to join the UK currency trade business. It would be best that you know a lot about the UK economy and the current strength of the currencies that it would be traded for. Two of the highest yielding currencies in the trade market today are the US dollar and the Euro dollar. There are a lot of information on the Internet on the strengths and weaknesses of these currencies. It is important for you to stay informed and ahead of the currency news.
Trade exchange can now be done conveniently online so you don't have to go out of your way to trade currencies. You can do it the comfort of your own home. It would be best if you have your own updated currency converter tool so you can know the current UK rates in contrast with the rest of the world currencies.UK currency trade is a lucrative source of income, if you just know how to play along this money field. Make yourself informed and you are on your way to making profits out of the UK currency.