UK Growth In The Spot Light Again

Last night the head of the International Monetary Fund (IMF) Christine Lagarde has stated that she has concerns over UK growth and the overall health of the economy. Ms Lagarde stated last night that the UK’s growth figures were “not particularly good” and these comments come after the forecasted growth outlook was downgraded again. The UK is on the verge of a triple dip recession and even if we do avoid two consecutive quarters it appears that we are unlikely to see any major uplift in the economy for the rest of the year. As we hear more damning news for the UK economy it is possible GBP exchange rates will suffer and weaken against a number of other major currencies.

Currently the Chancellor George Osbourne is pushing ahead with his austerity measures but there are some who are questioning whether these measures are the best way to get the country out of the current slump they are in. The chief economist of the IMF Olivier Blanchard believes the Osbourne should re-think his current plans and people are now asking whether the austerity measures should be slowed down so as to give the UK economy a chance to expand. Osbourne staunchly believes in his austerity measures and while they may be good for the longer term prospects for the UK they are unlikely to support Sterling in the short term.

Canadian Inflation Due – CAD Exchange Rates

On what is quite a quiet day for economic data some of the key data will be for those clients looking to transfer Canadian Dollars. At lunch time today we have Canadian inflation figures with Consumer Price Index (CPI) due for release which will give an insight into the change in price of goods and services. Theoretically an economy would like to see a steady, continual rise in inflation as it can be positive for an economy but should inflation rise too quickly it can have a very detrimental impact on that countries currency and likewise should inflation fall to negative levels it means the price of goods and services are falling which can also be negative for the economy. It is predicted that Canadian CPI today will fall from 1.4% down to 0.2% and if this is the case or if the fall is any more than this then we could see some Canadian Dollar weakness which could be good news for any clients looking to buy CAD.

If you need to transfer money abroad and you are looking for the best exchange rates then make sure you speak with one of our experienced currency brokers here at Foreign Currency Direct plc. The broker will be happy to discuss your currency requirements and the different contract options we offer which we can tailor to your individual needs. You can speak to one of our friendly and knowledgeable currency brokers by calling through to our trading floor on 01494 849752 or alternatively you can email me on