By Alex Ellis

Sterling is currently experiencing a rally as exchange rates have improved by around 1.8% since market open yesterday, this is following UK GDP data which was released yesterday. The predicition was for the economy to slow to a growth of 0.4% whereas in fact it slowed to 0.8%, which is still seen as fairly positive growth.

This meant that sterling improved across the board, although it remains to be seen how long this strength will last. I personally feel that the Euro is heavily overvalued at the moment as the ECB has remained very coy about the future and any form of bailout package. The UK and the US have remained very open about their intentions and this could benefit them in the longer term. If the Eurozone does have to implement austerity measures then these will come as more of a shock because the ECB have remained so quiet.

Yesterday’s GDP figure has prolonged any extension to the Bank of England’s QE programme and could in fact mean that no further extensions will be seen at all.

In any event when the market remains volatile it is sensible to seek the advice of a professional within the industry and in this case this is a currency broker. Using Currency Line you can be put in touch with an award winning currency broker who can help to guide you through the process.