UK Retail Sales Fall – GBP Exchange Rates Under Pressure
This morning it has been confirmed that UK Retail figures have fallen in March mainly due to the bad weather. This was highlighted by the fact that online purchases rising significantly but not enough to produce positive information. This decline had been expected but it is still seen as Sterling negative and as a result we have seen GBP exchange rates weaken against a number of the major currencies. These poor figures could be an important factor as to whether the UK does fall back into recession.
UK Unemployment Rises
There was further bad news for the UK yesterday when it was confirmed that UK unemployment rose to 2.56 million as it heads back towards the highest levels we have seen since 1993 when it peaked at around 3 million people out of work. This bad news led to Sterling exchange rates falling as fear of a triple dip recession arose once again. Negative news such as this could mean we are more likely to see next week’s Gross Domestic Product (GDP) figures confirm the UK is back in recession which could have a very damaging impact on the Pound. I would not be surprised to see GBP exchange rates fall significantly if it is confirmed the UK economy shrunk for the second consecutive quarter. So, if you need to transfer money abroad it could be worth speaking with one of our expert currency brokers who will be happy to help discuss your currency requriements and the options available to you.
US Economy Improving
The Federal Reserve Bank (FED) announced yesterday that they had upgraded its view of the US economy stating that in the past few months it had expanded at a moderate pace. The main areas of improvement were the manufacturing and construction sectors however the FED did state that consumer spending was still minimal and is an area of concern. The overall report was fairly positive though and has helped the Dollar maintain its strength against Sterling and a number of other currencies.
If you need to send money abroad whether it is to buy Dollars or buy Euros speak to one of our expert currency brokers here at Foreign Currency Direct plc who will be happy to discuss your currency requriements. You can call straight through to the trading floor on 01494 849752 or alternatively you can email me on firstname.lastname@example.org