US growth figures help Dollar

Yesterday’s main news in currency markets was the first reading of US GDP for the second quarter of 2015, with figures of 2.3% annual growth putting the US up with the UK as the two major world economies leading the way in terms of economic growth.

The Dollar gained in price when the figures were released, but only fractionally as a strong growth figure was already priced in to currency rates, and in fact weakened through the afternoon to end up more or less where it started. Speculation continues as to whether we will see an interest rate in the States as soon as September, which if played out would very likely make the American currency more expensive for those of you looking to send money to the USA. With falling unemployment and low inflation, many argue the conditions are right for the Federal Reserve to make the first post-recession move for a major economy in hiking interest rates.

IMF warns about Greek bailout, sends Euro lower

Closer to home yesterday, the IMF appeared to distance itself from Greek bailout negotiations, with a key official noting that the fund would not support a Eurozone/Greece financial deal until further reforms and debt relief are implemented for Greece. While the Eurozone can afford to fund the proposed bailout itself if necessary, there could be a wider political fallout, and the negative comments helped send the Euro to cheaper levels again, good news for anyone looking to buy Euros before the end of the month. Generally, GBP-EUR was trading higher throughout, gaining nearly a cent at its peak in early afternoon compared with overnight rates.

Eurozone Inflation Today

Today’s only economic data of note is Eurozone inflation, with figures released at 10am. At the same time, we have Eurozone unemployment, and other than that we round off July with Canadian GBP at 1.30pm. Next week sees the usual busy start to a new month, with key economic figures released around the world likely to move exchange rates. With the Pound currently riding high against most other currencies, consider fixing your rate while things are looking good.