The pound was once the world currency, and it is still the favorite currency of speculators and the most valuable currency. The exchange rate of pound against other currencies fluctuates greatly, mainly because as the earliest foreign exchange trading center in the world, the skills and experience of currency traders in London are top-notch, and these traders are well reflected in the trend of pound. It can be said that the short-term operation of the pound is the touchstone to test investors' skills. If you lack experience and technology, you'd better avoid it.

Because the pound belongs to the European currency, it is closely related to the economy and politics of the euro zone. Since Britain owns oil in the North Sea, the rise in oil prices is beneficial to the pound to some extent.

The basic factors affecting the pound are as follows:

1. benchmark interest rate. The Bank of England, the central bank of Britain, is responsible for setting the main interest rate, which refers to the lowest lending rate (basic interest rate). In the first week of each month, the Bank of England will use interest rate adjustment to send a clear monetary policy signal to the market. As the spread is the main reason of international capital flow, the change of benchmark interest rate usually has a great impact on the pound.

2. 10-year gilt yield. The yield difference between British Phnom Penh bonds and futures national bonds or US Treasury bills will also greatly affect the exchange rate between the pound and other countries' currencies.

3. Important British economic data. The main economic data of the UK include:

① Average income of initial unemployment rate

② Retail price index

③ Industrial output value

④ Domestic output value

⑤ Purchasing Managers Index

⑥ Investigation report on manufacturing service industry.

4.3-month Europound deposit futures. The price of this contract reflects the market's expectation of the deposit interest rate of the European pound in three months, and the difference of futures contract prices in other countries in the same period is likely to cause the change of the exchange rate of the pound.

Since Britain's main trade targets are the United States and the euro zone, some important economic or political events in these two regions may also affect the pound.

But what we use most in practice is technical factors. If you blindly rely on this information to make a decision, you may be too late. Relatively speaking, it is difficult for us to know the news in the first place. Only by knowing some general situation and combining with technical analysis can we do better and not be led by the market in the transaction.