Sterling’s recent strength against the US dollar has been baffling. With the pound currently trading slightly above 1.62 USD, this is making UK exports even more uncompetitive and making it much harder for the UK to sell goods abroad. Goods in the US are generally far more competitively priced, some items at least 30 per cent cheaper and with sterling up more than 10% since July, this does no favours for UK exporters. This morning’s UK GDP figures were in line with expectations with a rise of 0.8% for the third quarter – although this is good news, some economists had hoped and pencilled in a 1% increase. Are there signs of a slowdown in the growth of UK plc now after the better than expected economic readings over the last six months? The Office for National Statistics said there had been a “fairly strong” performance across all sectors. The data builds on a 0.7% GDP rise in the April-June period and this is the best quarterly performance since 2010. However, the UK is still behind a number of advanced economies, such as the US and Germany, that have managed to recover more strongly over the last few years. The US dollar has been remarkably weak over the last few months as the political showdown between the Democrats and Republicans resulting in the government shutdown and the struggle in agreeing to the US government debt ceiling has done no favours for the world’s biggest economy. This has cost billions of dollars in lost revenue and impacted US growth which subsequently has weakened the US dollar. However, all this has been resolved – albeit temporarily until early next year and this should support the US dollar as America gets back on its feet. The Middle East situation seems to be rather quiet at the moment with news about Syria barely newsworthy. The geo-political risks still remain in the volcano of the Middle East and any resumption of talk of an attack would quickly reverse the recent losses of the US currency as speculators would drive up the “safe haven” US dollar. One of the major currencies to weaken from an attack would certainly be Sterling. Ronnie Chopra Ronnie Chopra Ronnie has over 15 yearsâ€™ experience working with financial products and started his financial career at CMC Markets in 1999 and in 2001 he joined Merrill Lynch Investment Managers (now BlackRock - the world's largest asset manager) and worked there for over four years as a RFP analyst. Since 2005, he has worked in a number of brokerage firms as a CFD and FX sales trader and market strategist. A seasoned commentator, Ronnie has appeared many times on global business channels (BBC, Bloomberg, CNBC, CNN and SKY) to discuss topics concerning the financial markets. He has written numerous business-related articles and regularly lectures. View All Post By Ronnie Chopra Opinions share Read Next Forex Analysis: GBP/USD Stalls below Major Resistance James Chen 9 years Sterling's recent strength against the US dollar has been baffling. With the pound currently trading slightly above 1.62 USD, this is making UK exports even more uncompetitive and making it much harder for the UK to sell goods abroad. Goods in the US are generally far more competitively priced, some items at least 30 per cent cheaper and with sterling up more than 10% since July, this does no favours for UK exporters. This morning's UK GDP figures were in line with expectations with a rise of 0.8% for the third quarter - although this is good news, some economists… Regulated Forex Brokers All Brokers Sponsored Brokers Broker Benefits Min Deposit Score Visit Broker 1 $100T&Cs Apply 0% Commission and No stamp DutyRegulated by US,UK & International StockCopy Successfull Traders 9.8 Visit Site FreeBets Reviews$100Your capital is at risk.2 T&Cs Apply 9.8 Visit Site FreeBets Reviews$100Your capital is at risk.3 Recommended Broker $100T&Cs Apply No deposit or withdrawal feesTrade major forex pairs such as EUR/USD with leverage up to 30:1 and tight spreads of 0.9 pips Low $100 minimum deposit to open a trading account 9 Visit Site FreeBets ReviewsYour capital is at risk.4 T&Cs Apply Visit Site FreeBets ReviewsYour capital is at risk.5 Recommended Broker $0T&Cs Apply Trade gold, silver, and platinum directly against major currenciesUp to 1:500 leverage for forex trading24/5 customer service by phone and email 9 Visit Site FreeBets ReviewsYour capital is at risk.