From our friends at Moneycorp…
Dear Mr Cowie,
The British pound soared against the US dollar this morning following news that the UK economy has avoided a triple-dip recession. Gross domestic product grew by 0.3% during the first three months of 2013 according to the Office for National Statistics. This was far higher than most commentators had expected or could have hoped for, with the dominant services sector again playing a pivotal role in bolstering growth.
This is clearly an encouraging sign that the UK economy is healing, although with continual austerity measures planned for 2013 and beyond, growth prospects will remain muted.
Sterling’s climb higher against the dollar has been aided this week by weakening manufacturing data from the USA. Demand for American made durable goods, merchandise meant to last at least three years, fell by 5.7% in March from the previous month, giving rise to concerns that tomorrow’s US Commerce Department’s initial estimate of first quarter American GDP may deliver a worse than forecast growth result.
It’s certainly worth having a look at any US dollar requirements you might have coming up based on these movements.
If you have any concerns about your currency exposure throughout 2013 or would like to take advantage of the current levels on offer, please feel free to contact the Moneycorp Dealing Team on +44 (0)20 7589 3000.
Moneycorp Private Client Dealing Team
Tel: +44 (0)20 7589 3000