UK GDP figures were released showing that GDP contracted again in Q2 by 0.5%. However, this was 0.2% less than originally estimated.
Stephen Hughes is a Director of Currencies.co.uk has been with FCD (Foreign Currency Direct) for 8 years and became a Director in February 2009. He has extensive knowledge of the foreign exchange industry and his views and opinions are often seen in both national and industry press. In his spare time he enjoys playing rugby, golf and cooking.
“While the latest GDP data shows the UK has again performed poorly, there has been an upward revision on the original estimate of 0.7%. So, in fact, the UK economy is in a ‘better’ state than previously feared. As a result, expect no change on the Pound against the Euro or the Dollar in the short term.
“We believe that things may start to look up a little later on this year and that Q3 figures could return to positive, therefore technically ending the U.K being in a recession.
“The markets are much more sensitive now than they were pre 2008 and so the smallest change in confidence can lead to a large swing in exchange rates. It is highly recommended to seek advice from a currency specialist before making a transfer.”
In this exclusive IntelligentHQ interview, Stephen talks to us about his view on the markets for the week ahead.
Q1: What is the data investors and traders should be watching next week?
Every week is a busy at the moment and this one is no different. US GDP figures are out today, European Business and Consumer Confidence figures are out tomorrow along with German unemployment data, and the week closes with the Jackson Hole Economic Policy Symposium where Ben Bernanke will address central bankers, policy experts and academics.
Q2: We see a lot of data being released from the US next week what can we expect to see from the Dollar?
Any negative data released will lead to gradual weakening of the Dollar as the US government will not want to rock the boat by implementing any new policy changes so close to election time. Things are likely to just drift along for the next few months while Obama fights for a second term.
Q3: Governments are holding off from taking any drastic action towards euro zone change. What can we expect to see from the Euro?
Due to the lack of decisive action from European Governments, we expect continued gradual weakness of the Euro. Uncertainty hinders a currency and doubts surrounding Greece’s future are set to continue. The country may be out by the end of the year but until we see a firm course of action the single currency will continue to weaken.
Recognised for its market leading exchange rates* and award-winning customer service**, Currencies.co.uk, otherwise known as Foreign Currency Direct, has been providing its 43,000 private clients with quick and simple foreign exchange trades and international money transfers for 12 years.
Service is the cornerstone of the business. Founded by the forefather of the industry, Peter Ellis, currencies.co.uk lives and breathes foreign exchange and always aims to pass on the benefit of its expertise direct to the clientbase. The business keeps its clients fully informed on how international events and economic decisions will directly affect their finances. A small difference in the exchange rate can make a huge difference in your pocket.
Currencies.co.uk also works with corporate clients and is the first choice currency provider for music industry professionals and sponsors a number of music awards.
* For three consecutive years, the Sunday Times named them as best exchange rates provider. ** They were a runner up for the National Business Awards’ Best Customer Service award 2008.