Strain on data proves too much for the GBP

It’s been a fairly quiet week in the FX markets with all the majors trading in a fairly tight range but today could well be a day for some fireworks. Earlier on in the week we saw some very poor UK retail sales figures which halted the recent sterling rally but with data remaining fairly positive throughout the Eurozone the pound has benefited against a weakening dollar pushing through strong resistance levels and in fairness it has held up against the Euro and indeed in the last few sessions it has pushed back towards levels that we saw before the retail sales release earlier in the week.

Today sees Q2 GDP figures here in the UK and with all the positive data we have seen in recent weeks could we be set for another move higher for GBP?

It’s hard to assess the real state of the economy as it is well advertised that house prices are rising but when you drill a little deeper consumer spending is still fairly low. I would think that figures this morning are only likely to have an affect should they miss their forecasts and a lower reading could well see the end of GBP strength however should the reading be above expectations we could well see recent sterling highs tested.

If you do have any currency requirements in the near future then it is well worth getting in touch with your account manager here at Currency Index to discuss the options available for sending money. Data due at 9:30 so pick up the phone and get in touch to ensure your fingers don’t get burnt by a surprise GDP figure.