GDP Figures Out Today – Market Awaits

The week began yesterday with very little data and as such the market relied on sentiment alone to drive its movements. As a result and with a very positive UK GDP figure anticipated this morning at 9.30, the Pound was very much back in the driving seat, pushing up to near the recent multi-year highs against both the Euro and the Dollar.

UK GDP is expected to rise year on year to 2.8%, up from 1.9%. This is a phenomenal shift in growth and puts the UK right at the top of the class in growth terms in Europe and across much of the world. It is a significant coup for the government and with unemployment dropping much faster than anticipated is a clear sign the economy is heading in the right direction.

As a result; politically, the Conservatives are virtually neck and neck in the poles with Labour, which in the midterm is virtually unheard of and a clear sign that the people of these Great British shores trust the major coalition party the most when it comes to balancing the books. The Pound is likely to also be taking strength from this as a stable political status provides the support for positive market sentiment.

In other news the already weak Dollar will be under the spotlight this afternoon with the US Durable Goods Orders due out at 14.30. The figure is expected to be quite positive, but with mixed numbers out of the US recently, a failure to achieve these expectations could be costly for the Greenback.

With the Pound on a high and things looking good, now is a very positive time if you are buying a currency from Sterling. However, we have been let down before and it only takes one slightly negative data release to knock sentiment back, so it is a great time to be looking at a forward contract and who better to guide you through your options than your dedicated Currency Index account manager.