Stormy times for the Pound

28 October, 2013

Robin Haynes

As the UK wakes up to one of the worst storms for years, we are likely in for a calm day on the currency markets. After Friday’s GDP data, which confirmed expectations of a 0.8% growth in the UK economy from July to September (giving sterling a small boost), there is no major UK data due out this week. For the Pound we would not expect any significant movement, and the gentle downward movement of the last couple of weeks could continue. In Europe, things are looking up. Surveys are showing much more optimism in the single currency zone, which came out of a long recession in the second quarter of the year, and the Euro has been benefiting, gaining over 2% in value against the Pound this month. This week we have German unemployment, Eurozone consumer confidence & inflation, and unemployment all due out – so any more encouraging signs of recovery will likely make the Euro more expensive again. In the US we also have inflation figures and the Federal Reserve monetary statement too. The US Dollar remains weak with rates still near their best this year for those of you sending money to the USA.