Now that the dust has settled after the excellent UK GDP figures, the pound has seen significant gains of over 1% against host of major currencies. Below shows the positive movements for the pound as of 13:50 BST.
GBP-USD +1.14% GBP-EUR +1.00% GBP-JPY +1.47%
GBP-AUD +1.08% GBP-NZD + 0.80% GBP-ZAR +0.93
GBP-CHF +1.49% GBP-CAD + 1.12% GBP-SEK +1.16
Now GDP showed that the UK economy grew much more than anticipated in the last quarter. In fact it grew at its fastest pace in four years. This data will now raise doubts about how long the bank of England will leave interest rates at an all time low. When ever there is popular data out that may indicate an interest rate rise in the future you normally see the currency in question strengthen. This is what has happened to the pound today. The question being now is how long will the spike last?
After the vigorous budget cuts there are many analysts that still predict the UK economy will struggle to grow by the end of this year. All eyes will now turn to the banking stress tests which are due out at 5.00pm today. If you have a requirement to buy or sell any currency this release could be vital. if you wish to secure your funds before this potential volatile time just contact us via the enquiry form and we will come back to you immediately.
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