Figures this morning from the Office for National Statistics (ONS) has confirmed that the UK economy shrank less than expected in the second quarter of 2012 with the official figure at -0.5% rather than the predicted -0.7% that was stated last month. The improvement was put down to the construction sector which was better than expected. Despite the figures being better than first thought it still confirms what we already knew – the UK is in recession. The hope is now that in the third quarter the UK economy will show an improvement thanks to events such as the Golden Jubilee and the Olympics which could have seen retail figures improve and helped generate some positive momentum for the whole economy. Should the UK be able to recover from the current recession next quarter it could provide some much needed strength for Sterling exchange rates but another quarter in recession could result in some weakness for the Pound. This is likely to mean that going forward UK economic data releases will be very closely watched with the UK retail sales and house price data important while the hope will be that the construction sector will remain strong. So, to keep informed of all the latest news for the UK economy make sure you stay in touch with this currency blog or alternatively speak to one of our experienced currency brokers who will be happy to keep you informed.
In Europe today Greek PM Antonis Samaras is due to meet with German Chancellor Angel Merkel in order to discuss an extension on putting in place their austerity measures. Should Germany stand strong and decide they do not want to allow an extension for Greece we could see a real split between Europe and therefore more uncertainty for euro exchange rates. So, if you need to buy euros make sure you speak to us today so we can discuss your currency requirements and all the options available to you. You can call straight through to the dealing floor for free on 0800 328 5884 or email us at firstname.lastname@example.org