GBPEUR rates have stayed steady over the last 36 hours as little surprises from the market have resulted in little change. The real news of note is from the conversations had by the head of the FED over the last two
days, the general tone was negative which hit investor confidence resulting in GBP strength.
Today we have the retail figures for the UK being released at 9:30. This is of big importance and will drive prices across the board today. Why? Well Retail in the UK contributes almost 2/3 of the UK economy so
any change is seen as key to the overall health of the UK economy and therefore the strength of the pound. Expectations are for a fall, mainly due to the weather over the last 45 days, with the wettest June in over 100 years. It is safe to say that many feel like Noah at the moment with so much rain but this is expected to result in weaker growth in the sector and as a result a weaker pound. It you need to complete an exchange over the next few days, and are keen not to lose out, I would strongly suggest completing your trade in the very near future before this release.
There is another topic that have been on front of most papers but one we have not really discussed on the blog – the Olympics. There have been a number of reports suggesting what gains this will make to the
UK economy and as a result the pound. The first signs of a positive boast from the Olympics probably came yesterday, with news that there has been a boom in job creation and a majority of which from London. The figures showed that unemployment across the united kingdom dropped down to 8.1%; a very positive number considering that a recession still plagues most high streets. Generally my thoughts is that any real gains from hosting the games and paying out the huge sums to host and build the Olympic village will come after the event, probably reflected in higher Retail figures and potentially GDP figures in 2 months’ time. Not something I would suggest clients to consider will help in the near future. To answer the question I have already been asked a lot “Will the added tourism and people buying pounds to spend over the event
strengthen GBP?” No, the additional demand is to respectively small to make any change.
If you want to review your situation and maximise your trade contact a specialist today – here we provide a pro-active, award winning service that regularly saves clients £1,000’s compared to the bank – Contact me directly if interested at [email protected]