{"id":8350,"date":"2010-04-08T07:59:08","date_gmt":"2010-04-08T11:59:08","guid":{"rendered":"http:\/\/countingpips.com\/fx\/?p=8350"},"modified":"2010-04-08T07:59:08","modified_gmt":"2010-04-08T11:59:08","slug":"uk-growth-to-outpace-euro-zone","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/fx\/2010\/04\/08\/uk-growth-to-outpace-euro-zone\/","title":{"rendered":"UK Growth to outpace Euro zone"},"content":{"rendered":"<p><strong>eToro News<\/strong><\/p>\n<p><a href=\"http:\/\/www.etoro.net\/wp-content\/uploads\/2010\/04\/5.gif\"><img loading=\"lazy\" decoding=\"async\" title=\"5\" src=\"http:\/\/www.etoro.net\/wp-content\/uploads\/2010\/04\/5.gif\" alt=\"5\" width=\"279\" height=\"165\" \/><\/a>According to data released by the  International Monetary Fund the UK growth is expected to outpace that of  the Euro zone with a projected growth of 1.3% for 2010 against EU  projected growth of 0.8%. The IMF forecast which comes after more than a  2% weekly gain of the Sterling against the Euro and after UK GDP  figures showed the UK exited one of its worst recessions provided  further fundamental support for Sterling. The Euro which fell from as  high as 94 pence in Q4 to lower than 90 pence to the Sterling where it  is currently trading is continuing to show signs of weakness. It seems  that the Euro zone failure to secure the Greek debt in a smooth manner  is overshadowing UK problems and waning down Euro long positions.<\/p>\n<p><strong>Are the gains  sustainable? <\/strong><\/p>\n<p><a href=\"http:\/\/www.etoro.net\/wp-content\/uploads\/2010\/04\/6.gif\"><img loading=\"lazy\" decoding=\"async\" title=\"6\" src=\"http:\/\/www.etoro.net\/wp-content\/uploads\/2010\/04\/6.gif\" alt=\"6\" width=\"303\" height=\"171\" \/><\/a><\/p>\n<p>The UK economy still faces a choppy waters with the UK a deficits of  around 12%<strong> <\/strong>of GDP needs to be addressed and an unclear  political future ahead of the upcoming election in May. However the UK  has an important advantage over the Euro zone, the UK is fiscally and  monetarily independent. This allows UK decision makers to be more  flexible especially in stimulating<\/p>\n<p>the Economy. The BoE for example can easily resume its QE program to  stimulate the economy further. In addition the UK prime minister  reiterated he intends to tackle the budget deficits only at 2011 as to  allow the economic recovery to gain momentum. Although such measures are  generally Sterling bearish if handled effectively can generate long  term strength for the currency. The US recovery is a great example of  such a scenario where the US aggressive stimulus to the economy allowed  the US to outpace the Euro Zone in economic performance. Investors which  witness the EU paralysis during the Greek crisis are increasingly  eyeing that factor. The UK GDP has now moved into positive territory  rising by 0.4% in Q4 and investment inflows one of the most important  factors in Sterling strength is showing signs recovery rising by \u00a310.5B  for Q4 the highest gain since March 2008.Ahead of the UK elections due  at May 6th Sterling gains could be capped as political uncertainty still  looms, nevertheless in the long term if UK data will continue to spur  carful optimism Sterling gains against the Euro could continue with the  political uncertainty fading after the May elections.<\/p>\n<p><strong>Daily Forex Market Analysis provided by<a href=\"http:\/\/www.etoro.com\/A15748_TClick.aspx\" target=\"_blank\"> eToro<\/a><\/strong><\/p>\n<p>Disclaimer: Trading in the Foreign Exchange market might carry       potential rewards, but also potential risks. You must be aware of the       risks and are willing to accept them in order to trade in the foreign       exchange market. Don\u2019t trade with money you can\u2019t afford to lose.<\/p>\n<p><strong><a href=\"http:\/\/www.etoro.com\/A15748_TClick.aspx\" target=\"_blank\">\u00a9 2009 eToro Blog.<\/a><\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"<p>By eToro News &#8211; According to data released by the International Monetary Fund the UK growth is expected to outpace that of the Euro zone with a projected growth of 1.3% for 2010&#8230;<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-8350","post","type-post","status-publish","format-standard","hentry"],"_links":{"self":[{"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/posts\/8350","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/comments?post=8350"}],"version-history":[{"count":0,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/posts\/8350\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/media?parent=8350"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/categories?post=8350"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/tags?post=8350"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}