While it was announced yesterday that the UK was officially in recession there was also some more positive news for Pound Sterling exchange rates as UK consumer confidence reached a 9 month high according to the Nationwide survey. The contrasting data releases of UK GDP and consumer confidence does seem strange because as we have seen in the past a recession brings lower confidence so could this mean despite the negative growth in the economy we could still see some positive data releases as people continue to spend?
There is also another twist in this saga as the GDP figures yesterday are still to be revised twice and some analysts expect these revisions to show that the figures are actually better than we saw yesterday and we are therefore not in recession! With the Diamond Jubilee, Olympics and the European football championship all this summer the expectation is we could have a positive summer with a lot of spending and therefore even more positive consumer confidence. This does bode well for Sterling exchange rates over the summer.
So, while we have this conflicting information about the UK economy and therefore some uncertainty over the future of Pound exchange rates make sure you are staying in close contact with your currency broker here at Foreign Currency Direct plc so they can keep you informed of any market movement. If you need to send money overseas and are looking to time your transfer to achieve the best possible exchange rate make sure you speak to us today on 0800 328 5884 or email email@example.com.