Gross Domestic Product (GDP) – GBP Exchange Rates
This afternoon at 3pm we have the latest GDP estimate for the UK from the National Institution for Economic and Social Research (NIESR). The NIESR’s figures are a rolling 3 month figure and are so an estimate and not given quite the same level of importance as the Office for National Statistics who produce the official figures, however it is still key for the currency markets. The figure today will give a very strong indication as to whether the UK economy is strengthening and with the recent strong economic data there is hope we will have a positive data release which could produce some Sterling strength. Last month the NIESR announced they believed the economy to be growing at 0.8% and so any figure above this, especially if we were to break through the 1% mark could give Sterling a real boost, however the opposite is also true and a weaker number could see Sterling fall.
This data release comes just under 24 hours before both the European Central Bank (ECB) and the Bank of England (BoE) announce their latest interest rate decisions. There is an outside chance we could see the ECB cut interest rates in an effort to reduce inflation which they are currently concerned is running too high. This comes following comments last month from ECB President Mario Draghi who stated the ECB will keep interest rates at a the current low levels, if not lower. It will be interesting to see what happens tomorrow but this afternoons GDP figures will be the short term focus for anyone with an imminent currency requirement.
So, if you would like to stay up to date with the latest currency news then speak to one of our currency brokers today who will be happy to discuss the market outlook, your currency requirements and the options available to you on our freephone number 0800 328 5884 or if calling from abroad 0044 1494 725353 or alternatively email me on firstname.lastname@example.org