Figures from the British Chambers of Commerce (BCC) have shown that they believe UK Gross Domestic Product (GDP) figures will show minimal growth of just 0.1% which is a massive drop from their previous prediction of 0.6% growth. This downward revision in their prediction has come following the latest announcement showing the UK is in recession and that the revised GDP figures had confirmed this. Unemployment is currently running high and many sectors of the UK economy are struggling to show any growth and meanwhile the UK housing market remains very stagnant. While the Eurozone crisis rumbles on it seems that our close trade links to the single currency economy is really crippling any chance of a swift and full recovery and as such these predictions of 0.1% growth could be accurate. If growth remains at 0% or just above 0% it would be hard to see Sterling exchange rates strengthening any further than their current levels. At the time of writing we are witnessing close to 3 and a half year highs on Sterling Euro exchange rates and Sterling Dollar exchange rates on the slide it may be worth speaking to one of our experienced currency brokers today to discuss your currency requirements.

In the meantime Spain’s economy minister has stated that the rumours the country need an IMF bailout are “senseless” and has denied that Spain have discussed a bailout plan with the IMF. As the old saying goes there is no smoke without fire and if past history is anything to go by we may see a bailout for Spain soon; remember Greece denying that they needed a bailout? With Spain one of Europes largest economies and with the IMF already having to bailout a number of other countries the question I would ask is if Spain needed financial assistance would there be enough money to save them? I think only time will tell….

If you need to transfer funds internationally and are looking for the best exchange rates make sure you speak to one of our experienced currency brokers today so they can discuss your currency requirements and all the options available to you. You can call straight through to the dealing floor on our freephone number 0800 328 5884 or email me directly on trh@currencies.co.uk