Which way next for the Pound?

Currency markets have begun to look beyond Coronavirus.

More recently, the big global issue has been rising tensions between the US and China – the world’s two largest economies.

It affects all currencies.

If the situation escalates, it is likely investors will dump the Pound in favour of safe-haven currencies like the US Dollar, Japanese Yen and Swiss Franc.

Don’t forget Trump has an election later this year. It will suit his political strategy to pick a fight with China.

The other issue putting pressure on the Pound is the 6-letter word: Brexit.

No extension has been agreed with the EU. It’s a ticking time bomb for the Pound.