UK Debt Increases As The Possibility of Recession Increases

Figures released this morning have shown thet the UK’s debt is far more than predicted and up considerably from last month coming in at a staggering £16.747bn. This shows how much debt the UK government currently holds and as it is such a high figure it is likely to place more pressre on Sterling and also could increase the likelihood of the UK being in recession. While Thursday’s GDP figures are still likely to be the most important for this month any negative data such as this mornings Public Sector Net Borrowing can have a detrimental impact on Sterling exchange rates. The fact that this morning’s figures were collated from last month also means that this increase in debt could count towards the chances of the UK being in recession. Things in the UK seem to have got so bad that even the Archbishop of Canterbury has commented that it will take something “very very major” to get the UK out of its current economic depression. It seems that the economic problems we are facing is the talking point for many and are likely to remain in the headlines for some time to come and while the media focus on the negatives it is possible that Sterling exchange rates will remain under pressure.

There are a number of different contract options which we at Foreign Currency Direct plc can offer our clients in order to help them minimise their risk when it comes to currency exchange. These options include the straight forward spot contract where clients buy their currency for immediate delivery, forward contracts where clients can secure their rate of exchange for a period in the future using a small deposit and also market orders where our systems can monitor the currency exchange rates on our clients behalf.

If you would like to find out more about any of these options then please speak with one of our experienced currency brokers who will be happy to discuss your currency requirements and the options available to you. You can call straight through to the dealing floor on 01494 849752 or alternatively email me directly on trh@currencies.co.uk.