GDP Confirmation Gives Pound A Boost

28 November, 2012

Simon Eastman

Following the news this morning that Greece had got their bailout funds and a reduction in their debt, the Euro did make some slight gains against sterling and more noticeably against the US dollar. That was until the UK GDP release at 9.30am which showed the second revision for 3rd quarter. The result was the same as the first reading, 1% growth but as a slight reduction was expected the pound took advantage.

For those sending money to Sweden or Norway the pound made a gain of 1 percent over the day. With the good news out of Greece overnight, gains against the single currency were tempered to half a cent, although this still gave the best trading levels in a couple of weeks. Trading on cable was hardly affected throughout the day, but the rates are still up at 4 week highs – good news for anyone looking to send money to the US.

The dollar was buoyed by a raft of positive data this afternoon counteracting the positivity felt form the UK GDP. Durable goods orders were above expectations, as was consumer confidence. The housing price index was slightly lower than expected bringing a halt to further dollar strength.

Today we have various data releases from the EU, including Spanish retail sales and CPI inflation figures along with EU money supply and loans data. Over in the US there is new homes sales data and a speech by the FED’s Tarullo in the afternoon followed at 7pm by the Beige Book (a look at the overall economy and a key release for the markets). There is no data from the UK. To find out how the days data may affect your upcoming currency transfer call Currency Index for some friendly guidance.