• About Us
  • Authors
  • Currency Charts
  • Live Exchange Rates
  • Contact Us

Exchange Rate Forecast

Exchange rate forecasts and foreign currency news

  • British Sterling
  • Euro
  • US Dollar
  • Australian Dollar
  • Canadian Dollar
  • Brexit News
You are here: Home / Australian Dollar / GBP/AUD is still struggling despite yesterday’s positive Inflation Data

GBP/AUD is still struggling despite yesterday’s positive Inflation Data

August 17, 2016 by Joe Wright

GBP/AUD is still struggling despite yesterday’s positive Inflation Data

Will the downward trend continue from here?

pound sterling weakness aheadGBP/AUD is still trading below the key 1.70 level, and this is despite some better than expected Inflation Data coming out of the UK yesterday boosting the Pound.

Sterling has been under considerable pressure ever since the Brexit vote with GBP/AUD levels dropping to 3 year lows, making it a good time to repatriate Aussie Dollars back into Sterling as it’s been some time since Aussie Dollar sellers would receive this many Pounds for their Australian Dollars.

The Pound has been facing further pressure since the 4th of August, which was when the Bank of England’s MPC (Monetary Policy Committee) announced that it would be cutting interest rates down to 0.25% and also introducing an additional £80bn worth of Quantitative Easing.

This additional amount of Pounds in circulation coupled with the negative sentiments towards the Pound at present have piled further pressure on the Pound, pushing the GBP/AUD pair below 1.7000 and as low as 1.67462 last week.

Inflation Data out of the UK yesterday came out slightly above analysts’ expectations when we look at the figures on an annual basis, and although it has pushed Sterling up somewhat the GBP/AUD pair are still trading below 1.7000 which is a key psychological level, that could act as an upper limit as today’s high is 1.7007 so far which would imply that the level is acting as a resistance so far.

UK employment data for the UK

This morning will be the release of UK Unemployment Data and Average Weekly Earnings figures which will provide us with an indication of how the UK economy is performing since it was first announced that the UK will be leaving the EU, so I expect these figures to be watched closely by investors, and I think we could see some movement within GBP/AUD exchange rates this morning.

Filed Under: Australian Dollar Tagged With: Brexit, Inflation, Pound Sterling weakness

The information on this website is provided for information purposes only. It does not constitute advice to any person on any matter. Every reasonable effort is made to ensure that the information is accurate and complete but we assume no responsibility for and offer no warranty with regard to the same.

About Joe Wright

Joseph Wright brings a wealth of experience on the currency markets. He has worked in a number leading financial services organisations over the last seven years - working within a range of products including foreign currency exchange, equities and derivatives.

Recent Posts

  • Sterling finds support but unlikely to make any significant impact in the coming days May 9, 2018
  • US Dollar hits 5 month high against Sterling May 2, 2018
  • Sterling exchange rates at the mercy of political developments May 1, 2018
  • Pound weakens as political uncertainty once again raises its head May 1, 2018
  • Will Mario Draghi’s speech impact GBP/EUR? April 26, 2018

Live Exchange Rates

Archives




Copyright © 2021 — Currency.co.uk • All rights reserved. • Exchange Rate Forecasts • Privacy Policy •

We use cookies to ensure that we give you the best experience on our website. By using this site you agree to receiving cookies.I agreeRead Privacy Policy