Global Economy On Course For Strong 2014
According to the latest report from the World Bank 2014 looks set to be a positive year with global growth forecasts up on previous predictions and stated that the wealthier countries had turned a corner following what was a deep financial crisis. However, despite the positive news the World Bank also stated that the economic recovery does still remain fragile and that the tapering of the US bond buying scheme (their equivalent of our Quantitative Easing) could have a negative impact, especially if it is withdrawn too quickly. I believe this will be a key concern for the markets moving forward, especially with Janet Yellen taking over from Ben Bernanke on the 1st February this year as the decision as to how quickly to continue tapering the bond buying scheme will have wide reaching effects. Should the tapering happen too quickly we could see major economic problems in America and all of their major trading partners so while 2014 does currently appear to be positive there is clearly still a message of caution as we are not out of the woods quite yet.
Today’s Economic Data
This afternoon there is another raft of economic data for the US with mortgage figures, producer price index figures and also the FED’s Beige Book which gives an insight into the US’s economic situation. So, all of these data sets are likely to cause some volatility for the Dollar meaning anyone with a US Dollar currency transfer will need to keep a close eye on the currency markets. If you would like to be kept informed of all the latest currency news speak with one of our currency experts here at Foreign Currency Direct plc. You can call straight through to our dealing floor for free on 0800 328 5884 or if calling from abroad call us on 0044 1494 725353 alternatively you can email me directly on firstname.lastname@example.org