In the UK the Parliamentary elections are the main focus, with the incumbent parties promoting their ability to keep the momentum of the recovery going. Nothing too surprising there, still it’s too close to call to say which way it will go, and the resulting uncertainty will lead to another driver of volatility in the markets.
Author: solutionsedge
Economic & Exposure Focus
US retail sales have provided a timely indication of the US economy’s strength, as they show the largest gain in a year. The ECB should be encouraged by signs of euro area revival, although Greece uncertainty persists and the risks are on the downside, which should prompt all companies to regularly review and manage their exposures.
FX Exposure
The continuing volatility of GBP, USD and EUR over the last couple of weeks has re-highlighted the need to be identifying and managing your FX exposures. Margins and ultimately competitiveness and profitability itself are at risk if exposures are not understood and managed as they arise.
UK Economy: How Robust is the UK Recovery?
The services sector is as usual the primary driver of the economic recovery however the recovery is still exposed to downside risks such as geopolitical unrest in the Middle East and risks emanating from the Eurozone. There are potential upside benefits from the lower oil price, falling unemployment and real wage growth that should boost household spending and boost the economic recovery.
The UK Economy – The Impact of Lower Oil Prices
Lower oil prices are positive for the UK economy, with most sectors benefiting, consumers seeing an actual difference in the prices they pay, expect an effect on the UK inflation rate. This reduction is viewed as temporary and oil prices are expected to gradually rise over the months ahead.
The Start of a Blog
Just when you thought you already had enough of all the Bank news and economic updates to read, I thought that I should add to it by embracing the new information transmission mediums and start an ongoing Corporate Treasury Blog. I’m not intending on it being daily, just as and when I have time and there is something important of an economic and/or treasury based focus and I have something useful to say about it.
Solutions Edge 