By Jonathan Watson

In times of uncertainty, investors may look to economic data to help them make decisions. The UK has two of it’s most important data releases due out in the coming days.

Thursday sees the release of the Bank of England (BoE) Interest Rate Decision. At the last decision we saw one member of the Monetary Policy Committee (MPC) vote in favour of an interest rate hike. This strengthened the value of Sterling even though no actual change to the rate occurred. This shows the weight such activity can give to currency movements. The very thought that interest rates ‘may’ be increased, arguably led to Sterling strength.

The GDP figues due Monday may carry even more weight. The original figures were due for release in June but were delayed for as yet unexplained reasons – only that of an ‘error’. This was the final revision to Q1 figures so it seems slightly ominous that such an error would occur now. The figures have only been late twice in their history and there is certainly some cause for concern at this delay so early in the new coalition governments office.

The prediction is more formally not for either of the figures to change. That is that interest rates will be held at 0.5% and the final revision on GDP growth will be 0.3% .

But whilst we expect no movement - any deviance from this would surely stimulate market activity, we might see the merest mention of deviance also cook up some uncertainty.

To make the most of market uncertainty and secure commercial and preferential rates of currency exchange, please fill in the contact form and one of the experienced traders that write on this blog will be happy to advise you how to make the most of your transfer.