UK economy growth ahead of France and Germany

Published on August 30, 2011 by David White · No Comments

Foreign Exchange Overnight/Morning Ranges:

Currency Rates EUR/USD 1.4386-1.4532

Currency Rates GBP/USD 1.6277-1.6418

Currency Rates GBP/EUR 1.1292-1.1343

The chancellor was happy to find out that the UK growth was ahead of France’s and Germany’s between April and June. The chancellor found out from the Office for National Statistics as it confirmed its the UK economy grew by 0.2% in the second quarter of 2011. George Osborne has come under fire from the opposition who claim that VAT hikes and overzealous austerity measures were hampering the recovery.

Some slightly encouraging economic data from the U.S. last week saw global stock markets recover from their recent losses.

The Euro traded at one month highs versus the USD, but has weakened significantly. Italy has been criticized after making some amendments to its recent austerity bill, dropping a tax on the highest earners and limiting funding cuts to regional governments, this being after the ECB had recently agreed to support Italy’s bonds.

The Swiss Franc continues to weaken as the recent Swiss National Bank measures have the desired effect. Sterling relatively unchanged from last week, despite reports in the press that the housing market will remain gloomy for period. With the recovery in stocks, both AUD and NZD show another spurt of strength.

EUR/USD currently 1.4407. Support 1.4200, resistance 1.4500.

GBP/USD currently 1.6300. Support 1.6300, resistance 1.6600.

GBP/EUR currently 1.1315. Support 1.1100, resistance 1.1350.

Oil $ 87.34 Gold $ 1797

Dow +2.26% FTSE +2.57% Nikkei +1.16%