It has emerged that British household finances are worsening at their fastest rate in four months following Markits Household Finance Index. The index fell from 37 in April to 36.6 for May and with at least 50 points required to demonstrate no change it is well below the par of a strengthening economy. With some encouraging signs earlier in the year for the UK the release either demonstrates a relative increase in the domestic price of mortgage payments, worries about unemployment and/ or also an increase in living costs.
In terms of our position within the currency market many will be watching the UK Gross Domestic Product (or GDP) release on May 24th. With the UK back in double dip the release will be seen as indicator of how we are adapting to the recession.
With the Euro gaining some strength over the weekend it is a good time to be looking at a Euro sellback as a rare opportunity has emerged – A declining pound and a strengthening single currency. Make sure you speak to a broker here at Foreign Currency Direct PLC about the possibillity of a forward contract or stop/ limit order – Likewise if you do not hold an account feel free to sign up at no cost or obligation or email me on firstname.lastname@example.org and take advantage of the recent movemement.