Sterling finds Strength from Retail Sales
This morning the UK released Retail sales figures for July which were substantially better than expected showing a major improvement from a wet June. Sterling has already this week had good inflation data coupled with a reduction in the unemployed figures yesterday. The good news today moved the GBP/AUD rate back into the 1.71’s for the first time in 10 days.
Australian Unemployment Down
This morning the unemployment rate for Australia dropped by 0.1% and there was a further 26,000 jobs created well over double what was expected. Off the back of this data the Aussie managed to gain a cent but it was very short lived as the day has gone on.
Moody’s Rating Suggests Britain to Avoid Recession
The well-respected ratings Agency Moody this morning has released a report suggesting the UK is resilient enough to avoid recession and that the global slowdown will start to pick up. There has been plenty of uncertainty for Sterling in the short term and building confidence will be the key to get strength in the Pound.
Moody’s went on to suggest that the biggest threat to the global economy was the US. The US Presidential election has brought concerns due to some candidates involved. However they pointed to an interest rate hike in the US having a major effect on emerging markets and Europe. Investors would be inclined to move their funds back to the US if there was a hike.
What is clear in this volatile market is being informed could save you thousands. Sterling and the Aussie have both got external and internal factors causing major market swings. In the short term I believe Sterling could find further strength, but I don’t think the Pound is by any stretch in the clear.