HiFX comments on latest UK GDP figure
Andy Scott, associate director of FX advisory services at foreign currency specialists, HiFX, comments on this morning’s (31 March) UK GDP figure:
Andy said: “Sterling strengthened following stronger-than-expected consumer confidence for March, which hit a 12-year high, and an unexpected upwards revision to Q4 GDP quarterly and annualised growth. Today’s figures show that the economy ended 2014 on a slightly stronger than expected note, with household spending a big contributor to growth, and it continues to be well supported in 2015 by households who are seeing disposable income rising, boosting sentiment.
“Concerns over slowing house price increases and the General Election don’t seem to be fazing consumers who are seeing real term wage growth for the first time recently in the past few years, thanks to significantly lower energy costs. This bodes well for the overall picture of the UK economy since individual spending affects so many industries – from coffee houses to DIY chains.
“Sterling hit a day high of 1.3750 against the euro which was weakened by news of a German lender needing rescuing, and 1.4790 against the dollar following the GDP release.”