Yesterday the National Institute of Economic and Social Research showed that in July the UK economy started to contract. The three months ending quarter 2 saw the GDP rise to 0.6%. If you add May, June and July together there is a contraction down to only 0.3%. July is the first full month of post Brexit GDP data; however there has already been business data in the form of Purchasing Managers Index and trade surveys. There is little data so far that has shown a positive outlook in the short term for the Brexit.
There is a fairly quiet few days for Sterling as we move to the end of the week. This may be the calm before the storm as next week there will be a large volume of data releases. There will be both consumer and product price indexes which will report movements in the price of goods, giving an indication into inflation levels.
The Bank of England will next week release their latest inflation report which could provide some good news for Sterling on Tuesday. Due to Pound weakness of late the inflation level may have started to increase, the BoE have been struggling with this of late having been unable to get the level above 2%.
In the short term it seems very unlikely that Sterling will be able to gain much strength and there is potential for further losses.
I work for a currency brokerage and have complete control over the level of exchange rates I can offer. I am also able to assist with the timing of a transaction to make sure you get the most for your money. If you do have a currency requirements please feel free to send me Ben Fletcher an email at [email protected]