The Calm Before the Storm? (Matthew Vassallo)

GBP EUR Exchange Rate: Weekly Review July 16  

It has been a eerily quiet day on the currency markets as anticipation builds ahead of tomorrows key release. Much has been made of the upcoming UK Gross Domestic Product figures and what the outcome will mean for the UK economy and the knock on effect it will have on the Pound.

Personally, I expect us to avoid a recession by the skin of our teeth but I don’t think we will necessarily see much positive movement for GBP against the EUR. With news that Italy is on the verge of forming a coalition government and an acceptance by investors that regardless of tomorrow’s result it is likely the Pound will continue to struggle in the coming weeks, I feel we may even see a move back towards 1.1650 on GBP/EUR. The UK economy continues to be hampered by a stagnant economy and poor growth forecasts and this is not going to change overnight, regardless of tomorrows official figures.

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