When investing in currency trading for profit online and from a computer it can be easy to forget there are other types of foreign exchange trading going on with currencies. A current event reminds traders that the GBP can move up or down based on political talks and potential tensions eased in other parts of the world. In this case there will be little affect on the investment market; however, those wishing to travel to Iran might be able to do so with minimal safety in mind.
Currency Trading during Travel
Travel requires one currency to be exchanged for the local currency. It would stand to reason if there are talks to reopen an embassy in another country that you could expect currency trading to change for the two countries involved in these talks. To be more specific the U.K. foreign secretary has been in talks with an Iranian counterpart regarding the reopening of the U.K. embassy in Iran. The embassy has been closed for several reasons including the Middle Eastern war that Britain took part of. Tensions with Iran have been high in the past. In fact since 1979 tensions have been extremely troubling between the two countries.
The U.K. spokes person did say they are talking about reopening the embassy; however, before that can happen cooperation and trust need to be established. There will be two people assigned to the diplomatic task of negotiating terms for the embassy to be reopened. The idea is to start with the embassy and hope that relations can become better for other talks in the future that could affect currency trading even more than an embassy being opened again. For travel it will mean U.K. travellers who dare to visit Iran will have a safe place to go should tensions rise with warring factions. Iran is not altogether a peaceful nation, with some extremists still in power and willing to bomb just about anywhere. Still, Iran’s leader is trying to establish better relations for trade with numerous countries.
Currency Trading and Nuclear Issues
The U.K. is not the only country in talks with Iran. The USA announced it was speaking with Iran, but that things are being held up due to nuclear weapon concerns. The U.K. seems to have a different tactic for these talks by starting with embassy relations versus talks of nuclear nature although these talks are also underway. For currency trading if peace can be established it can help with foreign investments, which in turn can help with economic growth. When economic growth and stability are seen it often means one country is gaining profit and investors can take advantage of these moves.
Anyone currency trading in the investment market needs to pay close attention to news like the embassy being reopened. It is a minimal movement with significant impact for the future. Iran’s currency might see a surge, but it could also help strengthen the GBP over time depending on how far these talks go. It is something to watch on the back burner, while paying more attention to economic reports on the front burner.