Foreign Exchange Daily Market Update 25/11/2016

Fri, November 25, 2016

Brexit Has No Effect On Consumer Spending

Consumers and businesses increased their spending in the third quarter as the U.K. economy record a strong performance following the Brexit vote.

Household spending rose 0.7% from the second quarter and business investment increased 0.9%. Growth overall was unrevised at 0.5%, with trade producing the strongest contribution.

The report covers the first full quarter of GDP since Britons made the surprising choice to exit the EU. While there are few signs of any significant effect for now, growth is expected to decline next year.

In its twice-yearly review, the Office for Budget Responsibility on Wednesday cut its 2017 forecast to 1.4%. Uncertainty will lead firms to hold off on investing while the falling pound squeezes consumers by pushing up the cost of imports, it said.

The Pound rose slightly against the Dollar and the Euro after this data to 1.2453 and 1.1761.

Data to look out for today.

09:30: GBP Gross Domestic Product

13:30: USD Advance Goods Trade Balance

CURRENCY PAYMENTS MADE SIMPLE

PRESS RELEASE

KBRFX was mentioned in the Essex Chronicle for the top 100 companies by turnover in Essex http://www.essexchronicle.co.uk/100-Essex-businesses-revealed-annual-survey/story-25140555-detail/story.html

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