Question

                                                                                 
Graded Discussion Week 8
 

Go to the internet and find a news article published within the last three months  after December that discusses macroeconomic effects of exchange rates, summarize key points and post in the Discussions area.
Reflection – the students also should include a paragraph in the initial response in their own words reflecting on specifically what they learned from the assignment and how they think they could apply what they learned in the workplace.

Answer 1

Reference link is from The Telegraph, dated 12 Feb. 2019

Link: https://www.telegraph.co.uk/financial-services/currency-exchange/international-money-transfers/pound-forecast-post-brexit/

Article states that as Britain is exiting from European Union, pound is likely to depreciate. The terms with European union are still not clear and the final day of exit is approaching. This makes investors in UK apprehensive about business performance. For the same reason, foreign investments in Britain are negatively affected and demand for British pound has gone down making it weaker. Inflation is also higher and this makes export less competitive and hence demand for pound is still low.

Article is optimistic that demand for pounds will increase once Brexit deal is cleared.