There are a couple of key economic data releases due out this week including UK unemployment figures and possibly more notably the minutes from the last Bank of England interest rate decision. These minutes could show whether it was a unanimous decision to keep interest rates on hold and what was discussed in relation to Quantitative Easing (QE). Despite governor of the Bank of England Mervyn King stating it is unlikely there will be a cut in interest rates any votes for a cut in rates could lead to some Sterling exchange rate weakness. Following the euphoria of the Olympics we could be brought back to earth with a bump this week as the economy is likely to regain its place in the headlines, so if you need to buy foreign currency and are looking for exceptional exchange rates make sure you speak to one of our specialist currency brokers.
Figures from Japan have shown that the growth their economy had been witnessing has slowed in the second quarter to 0.3% as the issues in Europe continue to dent their exports and is having an overall negative impact on the economy. The first quarter of this year showed Japanese Gross Domestic Product (GDP) was at 1% so it was quite a drop in just one quarter and raises concerns that if issues in Europe do not improve soon we could see Japan’s GDP figures fall into negative territory and therefore the risk of recession could return to Japan.