By Grace Smyth
Ending the week’s economic data, yesterday morning saw the pound starting on the back foot again following the release of November’s GDP figure, which missed estimates and reported a marginally positive growth figure of 0.1%. A slower growth rate than projected, as economists were anticipating growth of 0.2%. Not the best start but rates managed to claw back some of the loss as the trading day progressed.
The afternoon’s focus shifted to the US with the Retail Sales and Unemployment figures. It looks as though our friends across the pond wrapped up the year with a spending spree – retail sales rose 0.4% in December from the previous month’s figure, giving the dollar more backing amongst investors.
Jobless claims in the US also saw a small uptick from previous weeks figures, rising to 217K from previous figures of 203K. Although an increase in claims were anticipated, these results came in a little over.
This morning UK retail sales figures saw a decline further, damaging the Pound’s reputation. The figures dropped by 0.3% in December after seeing growth of 0.1% in November. With figures falling short of market expectations which were anticipating a 0.4% growth. The unexpected weaker retail activity doesn’t provide a great outlook for the beginning of the new year.
Safe to say the pound hasn’t been the best performer this past week having posted disappointed economic data, a dovish Bank of England stance and a strong performing US dollar.
For those with upcoming currency requirements, it could be wise to continue with a cautious outlook to exchanging funds. It’s easy to want to hold off on making your transfers by assuming the exchange rates will improve back to the levels seen only a week ago, and disregard that sometimes you can stand to lose more than you gain.
Get in touch with our friendly team of experienced currency consultants to discuss your options and mitigate your exposure to an unreliable currency market