Tomorrow morning may set the tone for the day for Sterling as we see the release of U.K GDP (Gross Domestic Product) figures at 09:30am. GDP measures the amount an economy grew or indeed shrank over a specific period and these particular figures are the first revision of figures for the second quarter of 2012.
The initial figure released was indeed rather poor as the U.K appeared to have contracted by 0.3%. According to predictions this figure may actually be revised to -0.5% this morning, meaning things are worse than originally thought. Personally I feel that if we do see this happen the Pound may have a tough day and we could see it drop back into the 1.25s against the Euro and the 1.57s against the Dollar.
I actually believe that things may start to look up a little later on this year and that quarter three figures will be back to positive, therefore technically ending the U.K being in a recession for the time being.
The markets are much more sensitive now than they were pre 2008 so still absolutely anything may happen and the smallest change in confidence can lead to a large swing in exchange rates, the key is having an experienced and efficient currency broker on your side – if you would like me to assist you with a future transaction then feel free to get in touch directly on 0800 328 5884.