Pound sterling, the base currency of Great Britain, divided (since 1971) decimal by one hundred pence. The term is derived from the fact that about 775 silver coins, known as “sterling,” are issued in the Saxon kingdoms, two hundred and forty of which were minted from one pound of silver metal, and its weight was probably approximately equal to the last Troy pound. Consequently, large payments came to be considered “pounds sterling,” later, this concept was reduced to “pounds sterling.” When the Norman conquest took place, the Pound was divided for accounting purposes into twenty shillings and two hundred and forty pence. In medieval Latin documents the words libra, solidus and denarius, shilling and penny were used to denote the Pound, and this contributed to the use of the symbols £, s and d.
In 1971, the Pound was officially converted to one hundred new pence. The pound symbol was retained for the pound sterling, and the letter p was chosen for the new penny.
Since 1992, the Pound has moved freely, although the government has tried and succeeded in keeping inflation generally in line with Europe.
In October 1992, the target range was initially set at 0 to 4 percent but was later revised to 2.5 percent with a one percent band on either side of Tony Blair’s new Labor government.
This is a remarkable achievement given how prone the UK is to inflation and appears to portend a new economic convergence with Europe and perhaps a new currency, but it remains to be seen whether the Euro will usher at the end of the world’s oldest currency.
Forint is the official currency of Hungary issued by the National Bank of Hungary. The name of the money comes from coins that were minted in Florence in 1252 and were called Fiorino d’oro. Forint banknotes and “flinter” coins were introduced and distributed in 1946 as an essential step in the stabilization of the country after world war II. Due to inflation (especially in the late 1980s), the Fleur coins became irrelevant, and they were withdrawn from circulation in 1996. The coins continue to be minted in Forint denominations, and it became fully convertible in 2001 after high inflation in the 1990s, when Hungary moved to a market economy.
In the GBP/HUF currency pair, the US dollar has a significant impact. The very same combination of GBP and HUF is considered a cross-currency couple if correlated with the US currency. In this regard, analyzing the combined charts of the GBP/USD and USD/HUF pair; traders receive the corresponding price chart for the GBP/HUF pair.
The dollar has a significant impact on both the Pound and the Forint, which are represented in the analyzed pair. As a result, the events of the economy and the political situation in the United States on the level of interest rates, estimates of unemployment, the number of jobs, the indicator “newly created” – act as those that affect the correct definition of changes in quotations. At the same time, all the events that occur in the US economy can have a different impact on changes in the exchange rate. Thus, GBP/HUF is a kind of indicator or signal of the currencies that make up the pair.
Hungary’s economy has a strong dependence on foreign organizations that are located in the country because it has abundant reserves of currencies of other countries. The country is also characterized by a very high level of economic development, which is based on such industries as engineering, metallurgical and chemical. Moreover, Hungary has a well-developed agricultural sector, as well as horticulture and winemaking. A significant part of the country’s products is exported outside the country. Tourism makes a significant contribution to the economy: millions of tourists come every year to see attractive picturesque pictures of nature, to study ancient architecture and traditions.
To trade GBP/HUF, it is essential to monitor the economic performance of the EU and Russia, because, for Hungary, these countries are crucial partners in foreign trade. And of course, note that this pair broker can set a slightly larger spread than for critical or popular pairs. Therefore, before trading this pair, the trader should study and analyze all the conditions offered by the chosen broker for this asset.