GBP Forecast – What Impact will UK GDP Figures & Mark Carney’s Speech Have on Sterling’s Value? (Matthew Vassallo)

Sterling found further support yesterday, making gains against the EUR & USD and many of the other major currencies.

GBP/EUR rates have moved back above 1.15 this morning’s peak, pushing Sterling close to an 11 month high once again.

Whilst Cable rates also spiked, the USD has found plenty of support early this morning. GBP/USD have dropped back below 1.39, with 1.40 now likely to provide a lot of resistance ahead of this afternoons key economic data releases.

Those clients with an upcoming GBP currency transfer to execute should be keeping a close eye on developments.

This morning we have the latest Gross Domestic Product (GDP) figures, released at 09.30. This is followed by Bank of England (BoE) governor Mark Carney’s speech, with both releases giving the markets a key insight into the current standing of the UK economy.

With the central bank’s next interest rate decision just a couple of weeks away, it will be interesting to hear Carney’s tone as to whether they will hike rates, as many had anticipated, at their next policy meeting.

Whilst a prospective rise in interest rates may have been factored into Sterling current value to some extent, Carney was quick to downplay any certainties during a recent interview with the BBC.

If GDP figures were to come in above the markets predicted result of 0.3% growth, expect the Pound to rally. Any figure below this level and the opposite is likely to occur. This reading is also likely to influence Carney’s tone, so expect a potentially volatile afternoon for Sterling exchange rates.

If you have an upcoming Sterling currency transfer to make, you can contact me directly on 01494 787 478. We can help guide you through this turbulent market and as a company we have over eighteen years’ experience, in helping our clients achieve the very best exchange rates on any given market.

Our award winning rates can be accessed very easily over the phone and I can keep you posted with key market developments ahead of any prospective exchange you need to make.

Feel free to email me directly on [email protected] to find out all the options available to you ahead of your currency transfer.