How Will UK ‘GDP Data’ Affect GB Pound – Euro Exchange Rates? (Andrew Bromley)

Thursday 25th April sees the release of the UK Q1 GDQ figures, which have the potential to impact exchange rates substantially!

If you are considering buying Euros, then do get in contact to discuss your options. If Sterling drops to the six month low mark of  1.1430 on the back of negative GDP figures, then you would find a purchase of €200,000 would cost you an extra £4,600!

Tomorrow sees the release of BBA (British Bankers Association) measured Mortgage Approvals for March, and the CBI (Confederation of British Industry) Distributive Trades Survey. Although these on their own would generally not have a large effect on Sterling, when coupled with the hype surrounding potential poor UK GDP data, there is every chance that Sterling could take a hit. I don’t think that we will bottom out at the February figures in the 1.14s, however in the last seven days we have seen an instance where Sterling slipped in to the 1.15s rapidly!

Amazingly, there is concern within the single currency linking Scotland to further Euro uncertainty. As Scotland’s readies itself to vote on independence, Euro Zone members have voiced their concerns on members sharing currencies that aren’t the Euro. This has the potential to be a real banana skin for the Euro. Should Scotland vote on independence (unlikely and unwise in my opinion), the Euro-zone would look to hurry the Scots along with either their own currency, or immediate implementation of the single currency. As with the Cypriot Crisis, a small part of the Euro-zone has the potential to make waves on a huge scale!

If you consider yourself risk averse and want to find out what options there are available to guarantee rates of exchange, feel free to drop me an email [email protected] or call me 01494 725 353.

I work for a market leading Foreign Exchange company, with various awards from ‘The Times’ and ‘The Telegraph’, including best exchange rates.

Andrew Bromley