As the year draws to a close, the market seems to be enjoying the darker evenings and colder weather with volatility after a muted Autumn.
By Luke Trevail of TorFX
Growth continues in the UK, with GDP data showing that the economy was bolstered by 0.8% in the three months of April to June, which is a signal to the wider world proclaiming that we are moving in the right direction, possibly quicker than our economic counterparts.
Indeed, George Osborne said on his Twitter feed that “This shows that Britain’s hard work is paying off & the country is on the path to prosperity”. Praise indeed.
The road to recovery will be fraught with problems, however, and as we’ve learnt in months gone by that second guessing the market is never recommended as when we expect things to go up, they’ll often move against you for seemingly no reason.
Rate wise, buyers of the Euro have been teased with rates close to €1.20, the best we’ve seen all year but this level of resistance is proving tricky to breach so offers of €1.1850+ should be seriously considered by those who have been waiting for better rates through 2013.
The Eurozone has avoided many major economic tales this last few weeks as it quietly avoids any major upsets but we wait patiently for growth figures as the GDP data is announced later this week.
Problems within the single currency nations have been well documented over the last couple of years and, while the UK seems to be watering the green shoots of recovery, it remains to be seen whether Mario Draghi and his European Central Bank pals are merely weeding out the rubbish before sowing new seed next spring.
In my opinion the euro remains vulnerable and sellers of any funds back to the UK are well placed to take advantage of this soon while anyone looking to move GBP down to Spain, I urge to monitor the markets closely as we are likely to see a few spikes in your favour over the coming weeks.
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