Weekly Pound Sterling (GBP) Exchange Rate Outlook/Forecast

Modified: Friday, 20 September 2013 15:23 BST - Written by James Fuller

STORY LINK Weekly Pound Sterling (GBP) Exchange Rate Outlook/Forecast

Investors holding Pound-denominated assets received positive news with better than anticipated domestic public spending numbers earlier today. However, Sterling’s steady performance throughout the past week will be tested towards the end of next week with the release of finalised Q2 GDP data for the UK economy.

This morning’s lower-than-anticipated UK Public Sector Borrowing figures for last month provided the POUND STERLING with a fillip following yesterday’s tame trading performance. August 2012’s level of governmental borrowing stood at £14.4bn – in comparison last month saw monies received by the government fall short of expenditure by £13.2bn.

However, with a governmental debt of some £1.19 trillion still needing to be paid down, the British economy is still not out of the woods. Analysts had been anticipating a level of borrowing of £13.3bn for August, so the figures provided some limited grounds for optimism for investors holding Sterling.

Looking ahead to next week, Thursday’ domestic GDP figures are the next risk event of note for the Pound, while the latest GfK Consumer Confidence survey, penned in for publication in the early hours of Friday morning, will determine the weekly closing level for the Pound. The UK tender is now forecast to trade on a NEUTRAL TO POSITIVE footing in the short-to-medium term.

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TAGS: Currency Predictions Pound Sterling Forecasts