While Eurozone seems to rejuvenate the economy of the USA, the picture looks pretty brighter in the western world, including in UK. Significant economic recovery has been taken place in the US and UK. However, is it the right time for the forex traders to go for trading with these currencies? Well, this remains a million dollar question and to answer this in precise form, we have to delve a bit deeper. There are a lot of things that have to be considered by the traders, though apparently good time is definitely approaching, as predicted by the experts. In UK, manufacturing PMI has beaten the earlier expectations by hitting the highest point of 57.2 since 2011.
The traders have to take a not that new orders and the output level have been hiked in a grand manner, that too at a swift rate, which is the fastest since 1994. Both domestic and international demand is rising, but on the other side there are some hints of concerns too. With such market improvements, price inflation in commodity suite has been a major concern. Bank of England has to come up with swift measures to recover from this situation but the thing is that getting out of this situation does not seem like too easy at this moment as expects have predicted that sticky UK CPI would not decline in near future.
In the development or construction sector, British market has done well in recent times. There are some significant growth rates though formidable concerns are still looming. Overall it is a mixed bag for the traders of late, especially those who are planning to vouch for UK currency. The PMI rose 59.1 in the month of August to its highest level since the year of 2007, September. It has been observed that both the US and UK economy have been rejuvenated though US economy is running 5 percent ahead of UK’s economy.
According to the governor, the UK’s benchmark rate has fallen to a record amount, registering 0.5 percent whereas the unemployment rate has also fallen in the country after the country’s economic rejuvenation.
On the other side, major economies of the world, like – China and Australia have been doing well, even in the crisis period of the market, while Indian currency value has fallen drastically, hitting the lowest amount since a decade. Demand for copper (metal) in China has been a record in this year and the demand has been also anticipated to increase with the advent of time. Those, who are dealing with currencies, can opt for currency pairs like – USD and AUD, Pound and US Dollar, Chinese currency and UK currency, etc.
Overall, this is the time for market vigilance and one has to mark the steps with steady and insightful measures in order to reap future benefits. The value of Gold is slightly on the higher note whereas the time still has not come to invest in the gold. Commodity market, real estate, etc are the safest zones for investments right now.