Another fairly solid day for the Pound and we have a big week ahead! GBP forecast I predict a positive week following GDP data
This week is one of the busiest I have seen for some time! Releases include UK GDP (Gross Domestic Product), US GDP, the US Interest rate decision plus the Japanese rate decision and Australian Inflation data.
Personally I feel Wednesday will put U.K confidence higher with news that we have indeed avoided the dreaded ‘Double Dip’ recession for the time being at least it is however going to be a close call… Expectations from major analysts is that the U.K will have grown by 0.1% in the first quarter of 2012. Any higher than this and we could see a decent climb for the Pound, if it turns out that the economy shrank then the Pound could have a shaky few days ahead.
To technically be in a recession an economy needs to have two consecutive quarters of negative growth, and in the last quarter of 2011 indeed the U.K shrank. The figures on Wednesday are for the first quarter of this year and are extremely important for the value of the Pound. The good news is that data lately for the Pound has been fairly positive therefore I would not be surprised to see Wednesday leading to a little Sterling strength.
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