UK GDP figures out this morning have shown an improvement of 0.8% which cam in line with expectation. Sterling has remained relatively stable following the announcement.
With strong growth for the UK this is likely to keep Sterling strong against all currencies and with recent ten month highs against the Euro could this be the opportunity for Sterling to break through 1.20 and stay there. This would be a welcome early Christmas present for many looking to buy Euros with Sterling compared to this time five years ago when Sterling Euro exchange rates were approaching parity.
With growth rising in the UK this could lead to an earlier interest rate increase compared to the suggested change which will either come once UK unemployment drops below 7% or if UK growth beats forecasts and inflation creeps up too much. In theory if inflation rises too high this will mean interest rate increases to combat the data.
If you want to take advantage of this currency spike then get in touch for a free quote when buying Euros Tom Holian [email protected]