US Economy Grows But Slower Than Expected

US Gross Domestic Product (GDP) figures released on Friday afternoon confirmed that the American economy was growing but not as fast as had originally been predicted. The GDP figures showed the economy had grown at 2.5% which is clearly very positive for the largest economy in the world it was down from the predicted 3% figure, it does also very much put the 0.3% UK GDP figures in the shade. The growth in America was attributed to an increase in consumer spending which is currently at its highest levels for two years. The fact the largest economy in the world is growing at a decent rate is positive for the global economy and as a result could mean that we see positive movement for a number of the major currencies. As a result we have seen some strong movement on the currency markets with GBP EUR moving up close to the 1.19 levels on the interbank and cable (GBP USD) moveing up to around the 1.55 level. This means that we are currently witnessing some excellent opportunities to buy currency, however these opportunities could be short lived. We have seen in the past how quickly the currency market can change and so if you need to transfer money internationally you should be aware that this week alone we have the latest European interest rate decision and US non-farm payroll decisions both of which could have a major impact on the currency markets and the exchange rates.

If you need to send money abroad and you would like to assess the different options available to you please contact one of our experienced currency brokers here at Foreign Currency Direct plc. You can call straight through to our trading floor on 01494 849752 or alternatively you can email me on trh@currencies.co.uk