Most analysts had predicted that we would see growth of 0.20% over the last quarter however figures released actually confirmed that the economy contracted by 0.4% - a massive difference and as the markets move on rumour as well as fact Sterling instantly started to make losses against a basket of major currencies.
The markets would have previously factored in positive news and as soon as the information came out it once again led to the two steps forward then three steps back pattern the Pound has adopted this year.
I have previously in this report said and I will say again that I believe Sterling is currently undervalued however it will probably not be until at least the turn of the year before we see any marked improvement...
The Days ahead -
Monday
Today appears to be extremely quiet data wise however be aware of any unexpected announcements. German consumer confidence data came out first thing and was a little worse than expected which may lead to early Euro weakness.
Tuesday
Consumer confidence for the U.S is released in the afternoon & Washington in the evening alongside a minor bit of data out for the U.K first thing in the morning, expect volatility should either release be different than expected.
Wednesday
An inflation release in the first few minutes of Wednesday for Australia by means of CPI data, New home sales data in the afternoon for the U.S and a big one for the New Zealand Dollar late at night as they release their interest rate decision - will they go down the same route as Australia and hike rates?
For those of you that aren't aware an interest rate rise generally leads to positive movement for the currency concerned and a rate cut is generally negative as investors look to move their funds somewhere where they will achieve a higher return for their money.
Thursday
Half past one brings out some important information for the U.S as they release their GDP data confirming whether or not they are still stuck in a recession.
This data should lead to volatility on the markets for the Dollar and may well have a minor affect on Sterling as a well known saying on the markets is that when the U.S sneezes the U.K catches a cold so it may well indicate what is to come over here.
In short, yet another volatile week ahead and reasonably quiet data wise for the U.K however anything may pop up over the course of the week and investors will more than likely still have the R word for the U.K ringing in their head which could lead to further weakness.
This is a brief summary of todays report, should you wish to know more email me directly or click below to read the latest update on our website. Email Me
I will ensure I get back to you as soon as possible to discuss the options available to you. Click here to read the full report on our main website
If you have the need to send money overseas or bring money into the U.K and want the best exchange rates and a great service just click on the links below to go straight to our main site and click on the register now button to open a free no obligation trading facility quoting DANIEL WRIGHT as your point of contact.
Have a great day and thanks for reading!
Daniel Wright
No comments:
Post a Comment