UK recession set to continue?

Tomorrow at 9:30am the latest official revised figures for UK GDP will be announced. As most of you will be aware the UK exited recession in the 4th quarter of 2009 with a weak 0.1% growth and analysts are optimistic of an upward revision of this figure to 0.2% growth. One of the major threats to the value of Sterling at present is the possibility of a ‘W shaped’ or ‘double-dipped’ recession where the economy is at risk of falling back into recession before sustaining a full recovery. Germany are already at risk of this as their revised GDP figures released yesterday morning saw a drop from positive growth of 0.7% down to zero growth and I personally fear that the UK may find itself with a similar struggle.

In my opinion the importance of tomorrow’s release means that the markets are ready to react one way or another and I believe that should we see expectations of 0.2% growth or better then we could see a Sterling spike offering some better buying exchange rates across the board. However I believe that a result of 0.1% or worse could be catastrophic for Sterling…