Market Snapshot
This currency report will examine the recent factors that have affected the exchange rates on the currency markets and what may impact your currency purchase today and for the rest of the week including;
- UK and US GDP Data
- The Week Ahead’s Outlook
The table below shows the difference in currency you would have been able to purchase buying at the high compare to the low this month on a £200,000 currency transfer. It is evident from the table that the market has moved considerably showing how important it is to deal with a knowledgeable currency brokerage who will be able to keep you informed of any spikes in the market.
| Currency Pair | % Change | Difference on £200,000 |
|---|---|---|
| GBP EUR | 2.64% | €6,441 |
| GBP USD | 3.86% | $11,992 |
| GBP AUD | 1.33% | AUD 4,597 |
| GBP CAD | 2.08 | CAD 6,793 |
UK Gross Domestic Product
The Office for National Statistics (ONS) released the revised GDP figures for the UK on Friday which showed the UK economy had actually grown by more than initially thought. Despite these 
positive figures the market did not react positively with Sterling falling by just under half a cent against both the Dollar and the Euro during Friday’s trading. Comments from market analysts explained why.
Steven Hughes director of www.currencies.co.uk stated that “we should not get carried away with these figures as there is still a long way to go and with the recent budget cuts the risk of a double dip recession continues to weigh on the Pound.”
News on Monday from the British Chambers of Commerce (BCC) echoed this sentiment stating that they had upgraded the UK’s short term economic prospects but felt that the impact of the government’s recent budget cuts is likely to slow the economic recovery in the medium term.
So, while the market remains unpredictable, and with the governments budget cuts still to make an impact on the markets there is a real possibility Sterling could fall back to the 1.15 level against the Euro and below 1.50 against the Greenback in the medium term.
So, to discuss your requirements, the market outlook and all the options open to you to help you make the most informed decision possible contact us at www.currencies.co.uk.
US Gross Domestic Product
US GDP figures also released on Friday showed that the American economy was still growing but not by as much as had been predicted. Recent data from across the Pond had raised concerns about the US falling back into recession dragging the rest of the world with it. So, the fact that the figures were not as good as predicted was a blow to the global economy.
In response to this Ben Bernanke, the Fed Chairman, stated that he is prepared for “unconventional” policy to help boost the US economy. Bernanke admitted that the recovery had slowed to a weaker pace than hoped for and said that Quantitative Easing would be one of the ways to rejuvenate America’s economy.
Weekly Outlook
There is a raft of important economic data due for release this week which is likely to cause volatility. Some of the main releases are listed below:
Tuesday 31st 10:00 European Unemployment
Tuesday 31st 13:30 Canadian GDP
Wednesday 1st 00:30 Australia GDP
Wednesday 1st 9:00 European PMI
Wednesday 1st 9:30 UK PMI
Thursday 2nd European GDP
Thursday 2nd European Interest Rate Decision
Friday 3rd US Non Farm Payroll
To find out how these data releases could affect your currency purchase contact us today on 0800 328 5884.
