UK GDP Shows We Are Back To Pre-Recession Levels So Sterling Should Be Well Supported And The Euro May Come Under More Pressure Next Week (Colm Gilhooly)

GBP EUR Starts the Week on a Positive Note

Sterling has remained fairly solid today after UK GDP figures showed healthy growth for Q2 of this year, and the UK economy is back to the pre-recession size.  The pound had lost ground in the middle of the week due to the Bank of England Minutes showing all 9 members of the MPC voted to hold interest rates, and UK retail figures came in slightly below expectations.

However the news on the overall state of the economy is pretty good, and whilst there are still concerns of the pace of house prices and the deficit rising, this data is likely to keep sterling well supported.  The Euro on the other hand is still under pressure due to fears over further intervention by the ECB- if inflation data on Thursday is weak then we could see GBP EUR rates press on.  EU unemployment figures are released the same day so there could be a lot of volatility in the run up to August’s ECB decision.

If you would like to make a currency transfer either to buy or sell Euros, then feel free to contact Colm at [email protected] and I would be happy to explain how our services work and how we can get you the best exchange rate.