By Jonathan Watson

Tomorrow morning sees the release of the UK’s GDP figures. The anticipated increase should help strengthen the pound, which has had a real rough ride recently, particularly against the euro.

Roughly 7 euro cents has been lost in the last few weeks on the GBPEUR pairing. Great news for those who are selling euros, bad news for those buying euros!

 With a difference between the high and the low of approximately 6%, this volatility would severely affect your currency transfer. Staying close to a currency broker can help manage the impact of such volatility.

Stress Test results due tomorrow should shape the market. This issue has I believe been propping up the euro of late and once it is confined to history the markets will begin to refocus on what I consider the real issue - debt and astronomical budget deficits. Yes the UK also suffers this problem, but we have growth to support tackling the problem. Many eurozone countries are predicting negative growth. Poor results in the southern countries shadow any good news from the likes of Germany and France.

We still have quite a wait before the full effects of the UK’s Emergency budget are felt. Nevertheless if growth figures continue to creep up, the UK should have enough horsepower to weather the cuts and come out stronger with a healthier balance sheet than it does now. Based on this I would expect sterling to make gains against all the majors, particualrly the USD and the Euro. Of course only time will tell…

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