British Pound Sterling to Pakistani Rupee Exchange Rate
If we talk about the major currency pairs of the forex trading market, then most of them will have the British Pound Sterling (GBP) in them. But what about trading the major currency with a minor currency?
We are talking about trading GBP/PKR as a currency pair in the forex market. Do you think GBP/PKR can give you a good return on investment (ROI)? No matter what trading platform or trading account you use.
All trading platforms will give almost a similar return on investment. There is no fixed return on investment for this currency pair as there is for the other currency pairs.
This is because market volatility and liquidity also affect the currency rate in a similar way to other trading markets or financial markets.
Dive into Pound Sterling to Pakistani Rupee
Before investing in GBP and Pakistani Rupee, you need to know about this currency pair. The forex market does not consider this currency pair as the major currency pair. Nevertheless, many traders trade in forex pairs like Pound Sterling to Pakistani Rupee.
You can trade forex with profitability if you add GBP/PKR to your trading portfolio. But there is a lot of information you need to know before investing in this currency pair.
More about Pound Sterling to Pakistani Rupee currency pair
Forex trading is influenced by many factors including trading strategies of retail forex traders, online trading news, volatile financial instruments, liquidity, etc.
All these factors about the currency market are important to know as a forex trader. But it is even more important that you know about the GBP/PKR currency pair.
From the basics to the advanced, forex traders should know all the basics related to this currency pair. Here, we will explain everything about the Pound Sterling to the Pakistani Rupee currency pair.
These two currencies have different fundamentals associated with them. And when these currencies are brought together, the fundamentals of the two react with each other.
Fundamentals of Pound Sterling to Pakistani Rupee
Let's start with the basic information of the two currencies. Both of these currencies represent different countries and also belong to different continents. Both of these currencies are associated with two different segments of currencies. The first one is always counted among the major currency pairs.
On the other hand, the second one which is associated with Pakistan is considered as one of the major currencies. This difference makes this currency pair more unique and complicated for beginners. Forex trading for beginners is difficult. And such a combination of currencies makes it even more complex for a beginner trader.
Someone who trades in Pound Sterling or GBP needs to see the economic events in the UK. All the countries that are part of the UK are economically important. This national currency of the UK and its countries fluctuates a lot. From the global currency markets to the local economic markets, all these markets show an impact on the currency.
Forex trading is very often influenced by volatility, so technical analysis of GBP/PKR is more recommended by experienced traders. The same thing happens when it comes to trading GBP.
You can get more information about this currency from your forex broker. This currency is traded with many other currencies such as Euro (EUR), US dollar (USD), Australian Dollar (AUD), Swiss Franc (CHF), etc.
Pakistani rupee is the national currency of the Asian country Pakistan. This currency is not considered as a major currency in the foreign exchange market. But that does not mean that it will not give you good returns.
If a forex trader trades it with a good trading strategy, then it will be profitable. An online forex trading strategy is always required when you are trading currencies.
The same is true for the Pakistani Rupee. Any financial market can be analyzed using fundamental analysis or technical analysis. So if you know the fundamentals of that currency, you can analyze it.
Fundamentals of the two currencies
Fundamentals are something different from fundamentals. Fundamentals are a kind of property of the currencies. Currencies react in the same way every time a similar situation occurs in the financial markets.
As a financial trader, it is important to know the fundamentals of the currencies. After knowing the fundamentals of the currencies, it will be easy for you to learn how to trade these currencies in this automated trading arena.
The GBP is highly correlated with the other major currencies. As you know, the foreign exchange rates of the six major currencies are correlated with each other. Some currencies are correlated in parallel while others are inversely correlated.
GBP is correlated with EUR, USD, etc. You need to know the exact relationship between these currencies. This is one of the strongest fundamentals of the currency.
Pakistan Rupee is not a fast growing or stable currency in the forex market. However, you can still add it to your forex account. Forex trading with the PKR can be profitable if a GBP is added to the currency pair like other major currencies.
Factors affecting Pound Sterling to Pakistani Rupee rate
There are a lot of factors that affect the Pound Sterling to Pakistani Rupee exchange rate. You can try to trade using these factors along with forex news.
The best forex trading strategy is to consider all these factors. Before jumping into a live trading account, you can try free forex trading or demo trading.
International Trading Policy
The international trade policies of the two nations are important to know. It will greatly change the currency rate in the global market.
Relationship between the two nations
The economic, social and political relations between the two nations are also important to know for traders. You need to see the relationship health between these two countries if you want to track the currencies closely.
The national trade policy or the federal reserve policy of the two currencies is important to know. The national policy helps you to know whether a currency will move up or down.
The fluctuation of the inflation rate of the country also affects the national currency and its value.
Like the inflation rate, the movement of the employment rate also affects the value of the currency.
Import/export policies and other relevant activities are also important to know as a foreign exchange trader.
The GDP of both countries is always important to know because it reflects the overall economic growth of the country.
The interest rates published by the central banks of the countries also lead to changes in the national currency.
Flow of currencies
The flow of foreign currencies into the country and the flow of local currency out of the country will also affect the currency market.
Summary - Pound Sterling to Pakistani Rupee
Trading Pound Sterling to Pakistani Rupee can be beneficial. Do not think that PKR as a minor currency cannot give you great returns. This currency pair can be beneficial for you as a forex trader. Because the combination of a major currency and a minor currency can be good. But trading analysis for both currencies is really required.
You need to know what makes a currency move and how this currency pair will perform in the market.
Start Getting Free Signals
10,040 registered users
550 users chatting now