Forex Forums  

Go Back   Forex Forums > Forex Forums > Forex Forum

Reply
 
LinkBack Thread Tools Display Modes
  #1 (permalink)  
Old 07-23-2018, 05:21 PM
Junior Member
 
Join Date: Jul 2018
Posts: 23
Default UK GDP growth slowed

The Pound (GBP) has made a small advance against the Turkish Lira (TRY) today, after a major Turkish vote and before a UK economic report comes out.

This latter document, the Bank of England (BoE) financial stability report, might have a significant positive impact on the GBP/TRY exchange rate on Wednesday.


The report has two purposes, as in addition to looking at the state of the UK economy at present, it also offers a forecast on what could affect the country in the future.

The report will likely be considered in the context of last week’s BoE interest rate decision, where policymaker Andy Haldane surprisingly backed an interest rate hike.

Mr Haldane’s decision led economists to predict that an August interest rate hike could now be on the way.

With that in mind, if the BoE report suggests that the UK economy could strengthen in the coming months then Pound Sterling could rise sharply against the Lira.

Confirmation of UK GDP Slowdown could Cause GBP/TRY Exchange Rate Losses
Later on this week, there is a risk of Pound Sterling (GBP) losing ground to the Turkish Lira (TRY) on Friday when UK Q1 GDP stats will come out.

These finalised figures are predicted to confirm that UK GDP growth slowed in the first quarter of 2018, showing a shaky start to the year.

As well as a pair of snowstorms battering the UK over February and March, UK economic growth was also hindered by fears about how Brexit talks would develop.

The finalised reading is expected to confirm what many GBP traders have already been thinking, but could still be enough to cause a turkish lira exchange rate to pound decline.

Turkish Lira to Pound (TRY/GBP) Exchange Rate Losses Forecast on Trade Deficit Expansion
On the other side of the currency pairing, the Turkish Lira to Pound Sterling (TRY/GBP) exchange rate could be affected in the near-term by trade balance data out on Friday.

The measurement of Turkish trade in May is predicted to show a widening of the already substantial deficit of -6.69bn, to a new figure of -7.4bn.

Turkey has held a sizable trade deficit for over a decade, but a worsening of the deficit reading might still cause a drop in trader confidence and devalue the TRY.
Reply With Quote
Reply

Tags
forex, fundamental, gbptry


Thread Tools
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are On
Pingbacks are On
Refbacks are On




All times are GMT. The time now is 01:49 PM.


Powered by vBulletin® Version 3.8.5
Copyright ©2000 - 2021, Jelsoft Enterprises Ltd.
Search Engine Friendly URLs by vBSEO 3.1.0 ©2007, Crawlability, Inc.