Currency Note Sterling

UK economy growing faster than expected

By Ricky Bean August 27th, 2013

Friday was a bit of a mixed day for Sterling. Early on, gains were enjoyed on the back of the second estimate for the country’s GDP coming out better than expected, however, later we saw the currency fall sharply versus both the Euro and the US Dollar. Many put this down to speculation surrounding what may be revealed at the Governor of the Bank of England‘s speech on Wednesday. Market talk suggests that he will use this to reinforce his intentions to keep borrowing costs at their current all-time low. Furthermore, comments from one of the members of the Bank of England suggested that the central bank was willing to restart its quantitative easing program if necessary. Sterling remained steady in bank-holiday thinned trading yesterday, but as we look to the week ahead, Carney’s words will be the main focal point for sterling and markets could remain tentative before hearing them. The only other data to talk of comes on Friday, in the shape of the mildly influential House Price Index. Call your trader now for the latest price for Sterling, as markets speculate ahead of Carney’s indications.