The main talking point this week were the GDP numbers released Thursday morning. Gross Domestic Product numbers measure the total goods and services produced by the UK and is a key barometer to the strength of the economy. The consensus throughout the financial industry was a major fall because this was the first quarterly release since the UK public decided to vote out of the European Union. However the decline was not as bad as many economists were predicting. The quarterly figure was released at 0.5% (prediction 0.3%) and the yearly figure at 2.3% (prediction 2.1%).
As for sterling exchange rates you would have thought the pound would have had a good finish to the week however this was not the case and the pound continued to deprecate to the close on Friday. This is a common trend clients have got used to over the last 4 months.
This week the Bank of England release their latest interest rate decision and this release should be watched closely if you are buying or selling the pound for the remainder of the year. Before the Brexit vote it looked like the Bank of England were close to raising rates, how times have changed. We have already seen a cut by 0.25% since June 23rd and the golden question now is will the Bank of England cut rates this Thursday?
Many economists have predicted a cut to 0.05% however I’m sceptical. With GDP numbers exceeding expectation last week this gives the monetary policy committee a reason to hold off. It’s important to consider if members of the MPC vote in favour of cutting and I expect one or two will, the pound could still devalue consequently buying currency will become more expensive.
If you are reading this website in order to find out information in regards to buying or selling the pound I can help you achieve the best exchange rates on the market whilst keeping you up to date with economic information. Common clients I deal with are business owners, high net individuals and people buying property abroad.
Its important to analyse both currencies that you will be trading therefore I would recommend emailing me with the currency pair (GBPUSD, GBPAUD, GBPCHF etc) the reason for your trade (company invoice, buying a property) and I will email you with my forecast and the process of using our company email@example.com.
** IF YOU ARE ALREADY USING A BROKERAGE TO BUY YOUR CURRENCY IT WILL TAKE TWO MINUTES TO EMAIL FOR A COMPARISON AND I AM CONFIDENT I WILL BEAT ANY PRICE YOU ARE CURRENTLY RECEIVING **