This morning sees the latest revised data for Q3 UK GDP. GDP is a measure of all the goods and services produced in a country over a given time and a positive figure is good for the pound, whilst a negative figure shows a shrinking economy, which in turn is bad for the pound. The difficulty in measuring GDP is that it is often very difficult to capture every piece of data that is produced in time to compile the figures at the end of every month. Therefore you usually have the initial figures which in turn get revised as more data becomes available as time passes. The Q3 figures released last month confirmed UK GDP at 0.5% however should these be revised down in any capacity then expect to see sterling weakness at 9.30
German GDP earlier this morning came out as expected which helped the Euro claw back some of it’s losses from yesterday. The Euro sufffered heavily yesterday because a German bond auction had a very low take up showing a lack of confidence in the Eurozones driving economy and fears they too may get sucked a little more into the debt crisis.
The current pound euro exchange rates have been extremely volatile and we are seeing big swings up and down right through the day for the last few weeks as confidence ebbs and flows between the two currencies. I personally expect this pattern to continue in the next week or two and my recommendation is to look to stop loss and limit orders to maximise your exchange rate without risking losing too much. If you are buying or selling Euros and want an explanation of how this works then please feel free to contact Colm at firstname.lastname@example.org– last week upon my guidance a client held back from selling at 1.1780 and actually sold on a day when the market reached 1.1560 – on a €150k sell this is just over £2,500 extra saved! Whilst I don’t propose to have a crystal ball there are certain data releases that as a broker you would look to target to save your clients money, but also we can react very quickly as breaking news hits the market which can affect your currency purchase. Our service is free of charge (depending on the volume of the trade) so for an explanation feel free to give me a call on +44 1494 725 353 or e-mail at email@example.com – thanks Colm