Super Thursday – AUD is today's winner

The Pound to Australian dollar exchange rate fell by over 2% yesterday following the Bank of England’s interest rate decision and subsequent monetary policy. Although the bank remained neutral in its stance and even upgraded the UK’s growth forecast to 2% for 2017, the Pound appeared to be sold off in quick succession following this news.

The initial reports as to why this happened is that investors were hoping for an indication that interest rates would be raised towards the end of the year, however there was no such mention and a unwinding of the Pound in the form of profit taking ensued, thus weakening the Pound.

US and Australian refugee deal

Although the Australian dollar is currently performing well against the Pound, the landscape could very quickly change. If you’re looking at buying GBP with AUD, it may be wise to look at doing so sooner rather than later. The reasoning behind this, Trump.

Reports have emerged that President Trump called the conversation the worst by far of his calls with world leaders that and called the proposed deal ‘dumb’ on his twitter account. Although this isn’t a trade deal, it could spell trouble for future US Australian relations. This could spell Australian Dollar weakness in the months to come if trade relations become under pressure, as explained in my Euro section. We have a number of contract options here that can help to limit your exposure to upcoming weakness, as the team about our forward contracts to keep you protected.

There is no data of any significance today to be released for Australia. This afternoon we could see AUD strengthen against Sterling marginally as investors will look to unwind their positions ready for the weekend.

For more information on how future data releases could affect your currency requirement, call our trading floor on 01494 725 353 or email me here.

News

Read more articles
Exchange rates on this page are interbank rates and indicate where the market is trading to show the performance of a currency pair. They are not indicative of the rates which we offer. The information on this web site is provided free of charge for information purposes only. It does not constitute advice to any person on any matter. Foreign Currency Direct plc. ("FCD") makes every reasonable effort to ensure that this information is accurate and complete but assumes no responsibility for and gives no warranty with regard to the same.