UK retail sale figures were released this morning and despite showing a drop of 0.2% on the previous month, figures rose 2.7% compared to this time last year. This month on month drop was expected due to the decrease of online sales during the Olympics but the improvement from last year offers hope to what can only be described as an otherwise flat economy. The UK has struggled to keep the feel good factor going since the Olympics and a run of poor economic data has seen the Pound move away from the four year highs it was experiencing only recently against the single currency. Today’s figures certainly brought some welcome respite for Sterling and it gained almost 0.75% against the EUR during Thursdays trading, moving back through the 1.25 barrier.
Today’s retail sale figures rounds up a busy week of economic data here in the UK. Yesterday the Bank of England released their monthly minutes and despite no indication that their would be a further interest rate cut, talk of Quantitative Easing was high on the agenda. Whilst the decision was made not to introduce another round of QE imminently, many of the members agreed that it was ‘highly likely’ we would see further monetary stimulus over the coming months. In fact one member felt their was a strong case to introduce this immediately, a clear sign that leading decision makers believe that our economy is still very fragile and will need further support on its road to recovery.
This market uncertainty can be difficult to digest, especially if you have an upcoming property purchase or sale and are looking to transfer funds but are worried that market movements will ultimately leave you short changed. Here at Foreign Currency Direct plc we have multiple contract types all tailored specifically towards our clients needs. One of our most popular types is our forward contract, which allows you to lock in an exchange rate even if you do not have the full funds available. This is perfect for anyone looking to eliminate risk from the market but still take advantage of our award winning rates. If you would like more information please contact me directly at [email protected] or on 01494 787 478.