By Luke Dyson
To close off a relatively quiet week for sterling data wise, we have seen GBP make some slow but steady gains against both the euro and US dollar.
As the dust settles from the general election, a Labour government has been positive to date and boosted the pound, resulting in pushing rates up to new highs, GBP to Euro now trading just over a 2 year high and GBP to Dollar just over that 1 year high mark.
Not only this being the key driving factor, we also saw some very strong GDP figures month on month, with the previous being 0% and forecast being 0.2%. Results come back in at 0.4% throwing further fuel onto the fire.
This is very positive for sterling and is a key indicator that the UK is in an economic recovery moving forward, as a result lessening the need for the Bank of England to step in and lower interest rates.
Interest rates are still likely to be cut in the near future, however BoE Chief Economist Huw Pills stated he remained watchful of inflation and he is uncertain when a rate cut will happen.
Overall a relatively positive week for sterling, with markets now giving up amazing buying opportunities compared to months gone by. If you have any up and coming currency requirements please get in touch with A Place in the Sun Currency today to discuss your options with your currency consultant. There are many strategies available to help make the most of the rates or even limit your risk depending on your requirements.