The British Retail Consortium (BRC) yesterday announced that UK retail sales grew by only 0.7% the weakest level since May this year with the BRC stating that “people are not in the Christmas mindset yet”. While the UK economy faces rising unemployment, spiraling debt levels and minimal growth, weak figures such as the retail sales yesterday does not help the chance of a recovery and as a result can have a negative impact on Sterling. The negative press the UK economy is getting has led to many analysts state that the UK is heading back into recession. Recently Mervyn King, Governor of the Bank of England, stated that if the Europe crisis worsened then it could result in a recession in UK spreading through to the UK.
With the UK having such strong trade links with Europe and also a lot of money tied up in the European bail out fund the chance of recession hitting the UK is still strong and as a result the recent positive gains Sterling has made against a basket of major currencies, especially the Euro could be lost at a moments notice. Therefore, for those clients who need to transfer funds internationally it may be worth speaking with one of our experienced currency brokers who will be happy to discuss with you your currency requirements and all the options available to you. Please call us today on 0800 328 5884 or +44 1494 725353