Today could be a volatile day ahead for sterling exchange rates as we have the release at 9.30 am of the UK GDP figures. The Q2 gross domestic product figures measures the overall economic growth activity by looking at the total cost of all goods and services produced in the UK.
Q1 of this year showed economic activity grew by 0.5% but the second quarter is expected to decline down to 0.2%. At 8.30 am the pound has significantly weakened against a host of currencies most notably though against the Euro where we are down by 0.5% trading at a low of 1.1254. This is more than likely in anticipation that the GDP figures will decline sharply.
If we do see the overal economic activity fall further than expected then, we could see the pound weaken against most majors this morning. The one bright light is that sterling exchange rates are still trading at highs against the USD at 1.6340. If you have a requirement to sell the pound to purchase any foreign currency then I would recommend exchanging your funds first thing this morning as taking the risk that the pound will strengthen could end up costing you in the long run with the state of affairs in the UK.
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