Lukewarm would be the word to describe the happenings of the last seven days as the UK floundered in the aftermath of underwhelming anti-climax, and no, we’re not just talking about Andy Murray.

Finally Britain dragged it’s heaving, half rotten carcass from the pits of recession, but seemed to slump to a halt in the doorway. This all occurred as data revealed that Gross domestic product expanded by 0.1% between October and December, which was well below analysts' forecasts of 0.4%. So, as leftover fireworks from New Years Eve headed for the skies only to make a tepid detonation, it seems we made it, but only just. 

So, what did this mean for the pound? Disappointing data saw sterling take a nosedive on Tuesday afternoon. David Tinsley, UK economist at National Australia Bank said that "It's not impossible to imagine the first quarter returning to negative growth on the basis of today’s data”, which, along with a mound of political uncertainty, doesn’t bode well for the pound.

The euro currently has a couple of weak links, namely Greece and Portugal, whose economic issues continue to hamper the single currencies progress. The euro did however touch a session high on Tuesday whilst the dollar and yen rose broadly as investors cut exposure to riskier assets. This all followed China’s implementation of a planned increase in required reserves for banks.

On to Wednesday, and sterling crept up against a broadly weaker euro to recover from the previous day’s fall which was due to weak GDP data. The dollar wasn’t looking too shabby either, as it rose slightly against major rivals ahead of the US Federal Reserve's first policy meeting of the year.

It seemed investors felt risky one day and timid the next, as sentiment rose and fell throughout the week. Andrew Sentance gave sterling some firm support later on Wednesday, when he said that it may be difficult to keep inflation on target if import and services prices keep rising. The focus on inflation strengthened the view that the BoE may opt to pause asset purchasing under its quantitative easing programme this week, we’ll just have to wait and see.

So by Thursday the dollar was strong after hitting a 6-month high against a lowly euro, deflated by the prickly situation in Portugal. These concerns carried on through to Friday as sterling rode its luck against the euro. The dollar ended the week well after the US Labor Department reported that the number of initial jobless claims had reduced.

Looking ahead, this week’s big BoE event will keep cautious investors from taking any major risks. If you’re sensing now is the right time to make a currency transfer and you want to do it at the best rate possible, get in touch on +44 (0)207 740 0000 for a free quote or visit www.currencysolutions.com

Enjoy your week.