Even 0.6% growth for Q2 failed to spark interest in the pound yesterday as sterling rates fell across the board. The GDP data came out as expected but was not good enough to warrant a sterling spike.
The range of issues concerning sterling will not be outweighed by a quarter of growth, which despite being an improvement, is still well below pre-crisis levels.
Reasons to (not) be cheerful regarding the pound include the negative effects of leaving the EU, significantly high national debt (which is increasing) and the prospect of austerity for decades to come.
On the flipside the better data does mean that a sterling crash looks unlikely but in order to tackle the problems above Mark Carney may adopt more ‘easing’ measures to stimulate the economy at the next meeting in August. If therefore you need to buy some currency with sterling in the future, moving sooner may be better to avoid disappointment.
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