Following the build up to Mark Carney’s speech yesterday, Pound Sterling has been unable to recoup its losses as of Wednesday morning’s trading session.
The Pound continues to trade half a cent lower against the Euro, but has recouped some of its losses against the US Dollar as fears mount for the upcoming Presidential elections early next month.
It shows that the economic sentiment for the UK is negative and markets remain spooked to any upcoming Brexit related news. Similar volatility was noted 2 weeks ago when Parliament were debating the ratification of any Brexit deal, and when European leaders warned of difficult negotiations ahead.
Thursday’s GDP estimates for Q3
That being said Sterling could find support tomorrow if GDP estimates can match or beat expectations of 0.4%, GDP figures have swayed positively since the Brexit vote, coupled with higher consumer prices further good news for the Pound could arise. Much of this depends on consumer confidence and purchasing trends which have managed to shrug off the vote as yet.
That being said, the recent news that Microsoft plan to increase prices could spell the start of higher prices and slower growth, but remains yet to be seen, tomorrow’s GDP estimates could provide early signs of lower consumer spending which would inevitably weaken Sterling.
Tomorrow’s GDP estimates could be vital to understanding the post-Brexit implications and could spell the beginning of deeper concerns for the UK economy, those buying foreign currency should pay particular attention to tomorrow’s release.