Bullish Pound

8 April, 2014

Tom Arnold

GDP is obviously a very important number for any economy, and none more so than the UK with everyone craving growth in the hope we will see the UK’s economy push on following good recent data and figures. The GDP figure due today is not the main release from the Office of National Statistics, which is due out next month, but instead the initial estimate from the National Institute of Economic and Social Research. Despite not being the main release, this is still viewed as highly accurate, and so market analysts will have their eyes peeled and the Pound’s position will be heavily influenced if any surprises occur with the anticipated figure.

The Euro is under a lot of pressure at present, following recent announcements, with a fairly clear indication being given that the ECB may consider Quantitative Easing and other not previously used mechanisms to provide stimulus to the Eurozone economy. This has been seemingly contradicted during a recent speech from ECB Governing Council member Ewald Nowotny, who has indicated that this is unlikely to happen in the short term. With analysts uncertain whether the ECB’s right and left hand know what the other is doing, the Euro is quite vulnerable to any movements as investors search out safer havens.

All in all if you are looking to send money overseas from the UK, particularly to the Eurozone, to fund that dream holiday property purchase, then rates are looking very good at the moment, almost irrespective of your destination. However there is always risk in such a positive outlook, even if it is just the spectre of profit taking, so make sure you stay in close contact with your CI account manager to be kept informed of what is occurring and the options that are open to you.