UK GDP FIGURES ARE OUT!

This morning UK GDP figures were released; On par QoQ at 0.8% however the year on year expectation has been revised down to 3.0%.

On first look this may seem like this has come out weak for the UK, however the reality is, it is good to see that the UK is growing at a consistent rate, and there is definitely a positive outlook for the Pound after yesterdays financial stability report.

We still have some inflation reports coming out of Germany today which are expected in strong, this will be following Europe's recent interest rate cut, so we are expecting slight strength, however I don't think this will really move the markets as the forecast has already been priced into the market.

This week has been fairly stable in regards to currency pairs involving Sterling, many clients have been asking me whether the GBPEUR upward trend will continue; The answer is we are currently in Summer, where many tourists are going out into Europe, so the Euro is being heavily purchased, which is also contributing to the exchange rate becoming weaker.

If you would like analysis on any upcoming trades you may have then please don't hesitate to contact me.