Market view 280812

With a Bank Holiday yesterday in the UK, certainly from a GBP point of view trading volumes were very low and we haven’t really seen a change this morning from where we left off Friday afternoon. On Friday we saw the release of the revised GDP figures which were not quite a positive as many analysts had predicted. The figure released showed a contraction of 0.5%, an improvement on the original 0.7% contraction but this was a figure that had already been priced into the market and there were concerns over the fall in exports, investments and a lack of consumer spending over recent months. The poor data continues to weigh on the economy and all so adds further fuel to the fire when it comes to the BoE’s next move with their being a possibility of further quantatative easing which would be bad for the pound.

The week ahead is very quiet in terms of UK data releases and while the pound remains relatively strong securing any required currency now could be better than waiting until we get next months data releases.