The British Pound is at its lowest level in 37 years. Bank of England announced that currency notes would feature the King’s image gradually.
British Pound Currency Notes to Replace Queen’s Image
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After the death of Queen Elizabeth, the British Pound currency notes will feature the image of King Charles III.
Bank of England states that the image of King Charles will replace that of the Queen’s portrait. It will be a gradual change, says BoE. Existing coins and notes will remain in circulation for years and continue to be legal tender.
Queen Elizabeth has a strong bearing on the currency notes and the national anthem too.
The Queen ascended the throne in 1952, and her portrait first appeared on the £1 notes in 1960. The Queen’s face appeared on a few notes in Canada and on coins in New Zealand too. After the death of Queen Elizabeth II, the throne goes to King Charles III, the new monarch of the United Kingdom.
The British Sterling will see major changes with King Charles III taking over. Queen Elizabeth’s portrait faced right on the coins, while Charles will face left. The change in direction is a 300-year tradition, says the Royal Mint Museum.
The UK currency will have a photo of King Charles III on the left side.
The national anthem will change from “God save the Queen” to “God save our gracious King!” Earlier, it was “God save great George our King. Long live our noble King. God save the King.”
The fire service with the Queen’s initials will now have the Charles monarchy marked on them.
The Royal Mail will have new stamps with King Charles III.
King Charles is an eco-conscious environmentalist who tackles climate change and organic farming. His office generates electricity from renewable resources, solar panels, and heat pumps. Even his car runs on renewable resources. King Charles decisions on the economy will be keenly watched by his people.
UK Elects Prime Minister Liz Truss
The newly elected Prime Minister Liz Truss has to lead a country hit by high inflation and an energy crisis causing economic stress. Prime Minister Truss announced an energy support package to reduce inflation. However, analysts fear that it will lead to an increase in national debt and budget deficit. Doubts about the energy package have investors worried about the British Pound value. Tax cut plans proposed by Truss will add pressure to the prevailing inflation crisis that has hit the British economy.
Major political changes in the country have weakened the British Pound to US Dollar currency rate.
Forex Currencies Technical Forecast
GBP/USD
The British Pound is at a 37-year low at 1.15 levels, and the Bank of England warns that a recession is just ahead.
The British Pound slid to 1.1405 levels on September 7, 2022, but bounced higher later. The GBP/USD currency pair is at a key psychological support level.
While the British Pound has weakened, the US Dollar has strengthened. The strengthening Dollar value has led to further weakness in the Sterling.
The British Sterling declined for three weeks but closed in the green last week. The GBP/USD currency pair in the currency market saw a swing of more than 200 pips last week.
The GDP data on Monday and employment change data on Tuesday are expected to play an important role in the British Pound this week.
The GBP/USD currency pair in the forex market has strong support at the 1.1406 level reached in March 2020. It slipped lower to 1.2267 levels in the same month. The pandemic destroyed the economy of the United Kingdom and countries across the globe.
1.1623 is the level to watch out for on the upside. Investors have lost large sums of money as the British Pound slipped from the 1.2225 levels at which it was trading in August 2022.
GBP/JPY
The British Pound to Japanese Yen rallied to 1.666 levels last week. It will weaken if it moves below the 165.10 level, while the level at 166.25 provides resistance on the upside.
GBP/EUR
GBP/EUR closed at 1.1537 levels last week. The British Pound to Euro lost more than 250 pips in the last week of August. Last week, the Sterling to Euro showed signs of stabilizing but could not gather strength to move higher.
There is an energy crisis in the country. The ECB increased rates by 50 basis points. Policymakers will gather on Thursday again to decide on another rate hike. The Euro may creep higher if the ECB hikes rates by 75 basis points.
US Dollar Gathers Strength
The US Dollar is moving higher. The Fed’s interest rate is keeping the economy tight. People have to pay higher interest for their mortgage and bank debts. The DXY closed at 108.99 last week.
The strong US Dollar keeps the Sterling value lower.
