Pound creeps above 1.60 this morning

Over the course of the last week the Australian dollar has done well against Sterling, the AUDGBP rate currently sits at 0.5651.

Sterling exchange rates have continued to strengthen creeping back above the 1.60 mark this morning, a near 15 cent swing since the lows seen in February. This to me is creating some fantastic short term buying opportuntites and with the Bank of England interest rates decision at 12:00 tomorrow, why not take advantage today? Email Mike at mgv@currencies.co.uk to discuss your requirement.

Data to affect GBP/AUD this week.

As mentioned tomorrow we have the Bank of England minutes released at 12:00. It is almost a given that rates will remain on hold at 0.5% and this is unlikely to have much of an affect on the pound but should any announcement be made with regards to QE (Quantitative Easing) then we could see the pound slide. Personally I think the MPC (Monetary Policy Committe) who make this decision will avoid pumping more money into the system but with the UK now officially back in recession there surely is an outside chance, as to be honest I dont think the bank have anything else up their sleeve at this point. For this reason tomorrow could be one to avoid and I would expect volatility.

Other data of note will include Australian unemployment figures released over night. Expectations are for the unemployment rate to increase from 5.2% to 5.3% and we could again see some AUD weakness prior to the UK interest rate release in tomorrow’s morning session.

Finally on Friday we have UK PPI (Producer Price Index a monthly measurement of the rate of inflation experienced by the UK manufactures when buying goods and services). Figures expected to show a sharp fall from 1.9% to -0.6% month on month and this too could hit any further gains for the pound on Frdiay.

Should you wish to discuss your transfer in more detail then please email Mike directly on mgv@currencies.co.uk