Sterling’s values have been rather changeable this week with a movement of over 1.5% so far. European news has really taken the lead at the beginning of the week and the Uk is set to finish it. Earlier today UK RETAIL figures were released and as expected published a concerning fall in the amount of shopping which took place in September. Retail is a huge part of the UK economy and its recovery as it is said to be a consumer based recover. This fall was put down to the warmer weather stopping the annual purchase of winter clothes in the shops. Tomorrow is another key day for Sterling with UK GDP figures being released in the morning. Data from the UK this month has missed expectations on nearly every area as the uncertainty in Scotland last year impacted the market and the GDP figures tomorrow are expected to be no different. Levels are expected to fall steeply which could have a big impact on the value of Sterling and any currency transfer that YOU may have to do. It’s my personal view that levels currently will be the top end of the range expected for the rest of the week and the month of October so if you have a currency transfer to make you may wish to move in the near future to avoid any disappointment.
Longer term and into next month I do think there is some optimism as economic data in the UK should improve. There are no guarantees however and with a building concern about the health of Europe and Germans situation I would remain wary. Germany is expected to be close to a recession this quarter as trade with Russia impacts their economic situation. (Was it not Russia who was the target not Europe with these sanctions?) These is actually having an impact on the value of the pound as investment has fallen this month. This has been down to the global view that the UK is so dependent on the health of the single currency. Lots of topics to watch going forward certainly.
If you would like more information on any of the information above and how this could impact your situation make sure to contact us or myself directly on [email protected]
Look forward to hearing from you and happy trading!