Today appears to be very light on the ground data wise for the U.K and Indeed the Pound, however I will be extremely surprised to see a quiet market this time tomorrow.
The U.K release GDP figures for quarter 2 and expected is a growth figure of 1.2%.
GDP (Gross Domestic Product data) effectively shows just how much an economy has grown or shrunk during the specific period, growth is clearly seen as positive for the U.K and contraction seen as negative, and with the mention of a double dip recession being banded around, a figure lower than expected may lead to major Sterling weakness.
The U.S of late have been talking about a potential double dip and a common saying on the currency markets is that when the U.S sneezes the U.K catches a cold so although we are yet to see major evidence of any double dip in the U.K it could be the fact that this may be just around the corner.
Personally, I see no major panic tomorrow as I think we are still a few months away from really seeing the negatives creep back in however anything can happen so if you do have something you need to trade in the near future it is well worth having either a limit or stop loss order in to protect you from market fluctuations.
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