The UK economy slowed in the first three months of 2017. After a very positive Q4 growth rate of 0.8%, the January to March 2017 data posted an initial estimate of just 0.3% growth on the quarter and 2.1% on the year.
Such a slowdown would normally produce a drop in the value of the Pound, but Sterling is looking robust as the UK election approaches and the polls still reflect a significant majority for Theresa May’s Tory party.
In addition, other UK data is still strong when compared to other industrialised nations; unemployment at 4.7% and falling, inflation above the Bank of England’s 2.0% central target, and improvements in housing and manufacturing.
David Johnson, Director, Halo Financial
“As long as data doesn’t take a significantly downward turn, the markets will tend to focus on the UK election and Brexit negotiations and these will overshadow individual data releases when it comes to the value of the Pound,” said David Johnson, Director of Halo Financial.
“In fact,” continues Johnson, “the Pound is testing a number of significant technical levels as it strengthens. AUD 1.73 is significant, Sterling is pushing towards NZD 1.90 and is threatening to test USD 1.30. These are all levels that mark a change of trading ranges and the Pound is battering at the doors of all its major currency partners. If next week’s slew of UK data is as positive as other recent economic news, Sterling could well start May by flexing its muscles again.”
About Halo Financial
Halo Financial is a leading UK foreign exchange brokerage, offering a comprehensive range of services to individuals and businesses since its inception in 2005. The business prides itself on offering a flexible and personalised approach for each of its clients, simplifying the seemingly complex foreign exchange market to maximise savings in currency transactions and make money go further.
Halo Financial specialises in managing currency risk by offering hedging strategies and best execution for B2B and B2C clients with vertical expertise in numerous industry sectors such as international trade, financial, education, migration and overseas property. Staffed by qualified technical analysts, the company is authorised by the Financial Conduct Authority and HM Revenue and Customs.
Halo Financial also received the Gold award of Best Supporting Service at the OPP awards, the Gold Award for Financial Support and Innovation from Re:Locate Magazine and has 5 out 5 star customer gold merchant status rating via independent review website, Feefo.com
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