This morning we begin to see Gross Domestic Product (GDP) figures for European economies in fact GDP for Germany, France and Greece’s figures have already been announced. German GDP came out for the second quarter of 2012 at 0.3% as both domestic consumption and their exports improved while France posted fogures of 0% and Greece contracted at a worrying 6.2%. While Germany’s figure may not seem overly large it is expected to be one of the strongest of the region, the focus however may be on the more negative French and Greek figures. It was not long ago France was being hailed as one of the most powerful economies in the Eurozone and was responsible for preventing Greece from defaulting through their financial contributions to the debt stricken economy.
When we see the overall figure for Europe later on this morning there is a chance that should they show negative figures we could be prepared for some Euro exchange rate weakness and therefore Pound Sterling Euro exchange rates could push back up to the highs we saw a couple of weeks ago.
In the UK, this morning we have heard figures from the Royal Institution of Chartered Surveyors (RICS) showing that house prices are expected to fall in the coming months and that the number of homes coming up for sale is likely to fall. As a result RICS have told people looking for a quick sale that they should be realistic about their selling price. The housing market remains one of the most important factors within the UK economy and any weakness here is likely to hinder an possible recovery. With continued problems in Europe having a knock on effect on the UK, a weak housing market and falling GDP figures we could well see Sterling weaken from the current high levels it is currently at.
So, if you need to make an international money transfer and are looking for great exchange rates make sure you speak to one of our experienced currency brokers here at Foreign Currency Direct plc. You can call straight through to the trading floor for free on 0800 328 5884 or email us on firstname.lastname@example.org.