UK GDP drops sharply along with the pound – The best time to buy sterling this week?
Following on from this morning’s post we have seen GDP (Gross Domestic Product) data in the first estimate of Q2 GDP come in at -0.7% versus the expected -0.2%. This has weakend the pound against all currencies by about 0.2-0.8% taking the edge of recent levels, presenting a good buy sterling opportunity. 0.2% may not sound like much but on €300,000 transfer, it is 458 GBP. I don’t think anyone would turn down nearly 500 GBP for a mornings work! Indeed I have traded many of my clients selling Euros this morning on this spike.
For the reasons I covered at the end of this morning’s post we have not seen a major sell off of the pound which underlines the point I was making that the UK is holding its own because it is dealing with its debt problems. The pound is however still down slightly so I think this is presenting a good opportunity for anyone looking to buy sterling in the coming days and weeks.
If you would like further information about the markets or what is moving your rates please feel free to contact me on jmw@currencies.co.uk or call me on 01494 787 478 quoting PSF and asking to speak with me Jonathan.
