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GBP/EUR falls from poor UK GDP figures (Joshua Privett)
Sterling has fallen against most of its currency pairings, most significantly for GBP/EUR and GBP/USD pairings from lower than expected GDP figures for the UK economy.
The figure was the preliminary estimate for how much the UK economy grew during the third quarter of 2015. It was already expected that the figure would come in lower than the second quarter, but even this conservative estimate turned out to be a boast that the UK economy could not match. Instead of the 0.7% growth recorded in the second quarter, this fell to 0.5% and now yearly growth has been downgraded to 2.3%. As a comparison, growth in 2014 was above 3%.
Frankly, I’m surprised that markets have only ticked down by half a cent on GBP/EUR with the news.
The fact that growth slowed down this much even with record retail sales figures recorded in the UK economy thanks to the Rugby World Cup -which is coming to a close this weekend- suggests that the slowdown in the British economy is more serious than the data suggests. When North American markets open to the news this afternoon, they may be more concerned and I would be surprised if Sterling did not weaken further off the back of this.
In any case it seems very unlikely that Sterling will make any further gains today. The fact that markets have given a muted reaction to the news suggests that these current buying levels for GBP/EUR and GBP/USD are a gift.
I strongly suggest that anyone with Euros to buy before the end of the year should contact me on 01494 787 478 and ask the reception for Joshua to discuss a strategy to maximise the Euro return on your transfer, and receive a competitive quote for your exchange. I have never had a problem beating the rates offered elsewhere, and even if you do not require currency until next year, these current levels can be pegged to avoid any chance of the market moving further against your favour. [email protected]
Source: http://www.poundsterlingforecast.com/2015/10/27/gbpeur-falls-from-poor-uk-gdp-figures-joshua-privett/
At the moment market seems extremely mixed in way things are pending out, so we have to be very careful with how we go. I usually prefer to go long term in these pairs to keep the risk down and thanks to OctaFX broker, I am also able to get swap free account option which means I am not required to pay any extra fees or charges, so that really helps me working well and allows me to be successful without any trouble at all.