More upbeat minutes does little for the pound, eyes now focus on GDP this Friday

GBP EUR Slumps with Lower GDP Print

Following this mornings Bank of England minutes the pound has had a poor day against the Euro and US dollar but seen strong gains against the Australian and New Zealand dollar. In the minutes the Monetary Policy Committee judged that the recent recovery in the UK was gaining momentum and suggested that the second half of the year would show stronger growth than previously forecast and unemployment would fall more quickly than thought in August.

However, the bank did cite worries over the economic instability in other countries that could harm UK exports – “The outlook for the United States seemed slightly softer on the month, the recovery in the euro area remained modest, and there remained a risk of a sharp slowdown in emerging economies. Overall, therefore, there was a risk that the recovery in the United Kingdom might be less well balanced between exports and domestic consumption than was ultimately needed.”

The next big data set for this week from the pounds point of view will be Q3 GDP data on Friday – expected to improve from the last revision of Q2 by 0.1% up to 0.8% and should this be as forecast we may find the pound having a stronger end to the week.

Should you have an upcoming exchange to arrange then please contact the office on 01494 725353 or email Mike at [email protected] I will gladly contact with you with an overview of the currency service we provide.