A Brief History of the Pound (Strength and Weakness)
Black Wednesday, 16 September 1992
Black Wednesday, or the 1992 sterling crisis, was a financial crisis that occurred when the UK Government was forced to withdraw sterling from the European Exchange Rate Mechanism. This is when George Soros famously shorted the pound and made a 1 billion dollar profit.
Dot-com Bubble, 2000
The dot-com boom peaked on 10 March 2000. The bust followed, causing USD strength.
The GBP Boom, 2002-2007
The recent economic golden era for the UK. Inflation was steady, and economic growth was high.
The Global Recession, 2007/2008
The boom was inevitably followed by a bust—a financial crisis that shook the world. Cash flowed to dollars, yen, and Swiss francs.
I lived through this (and lost my employment). I started trading during the recovery.
Recession Recovery, 2009-2024
Global economies slowly recovered from the 2007/2008 financial crisis. Cash flowed back to non-dollar and non-yen currencies.
Brexit, 2015-2019
The GBP weakened due to the uncertainty of the UK leaving the EU. The EU referendum was held on 23 June 2016. The GBP continued to weaken on the referendum result and the UK leaving the EU.
I remember watching the pound fall the week after the referendum. The volatility was nothing I had ever witnessed... Until COVID!
COVID & High Inflation, 2000-2023
The global pandemic brought panic to the markets, weakening the GBP and strengthening the USD. This was followed by high inflation, further weakening the GBP and strengthening the USD.
I wonder where
GBPUSD go from here?
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