Sterling posts strong gains to finish off the week, levels just shy of 1.59!

AUD GBP Looking for Catalyst at Key Level

Sterling has finished a strong week on another positive note against the Aussie dollar gaining 0.5% on the day, this has taken the pound to fresh year highs against the AUD. The gains since the lows of February have now reached 8% creating some great buying opportunities. Why has the Aussie weakened? Much of the movements appear to have stemmed from the US jobs data in which non-farm payroll figures came in way below expected. This has caused concerns over world economic growth figures and a move away from riskier currencies, such as the AUD, was seen. With the UK heading into a bank holiday weekend moves may well slow over the course of the next few days but be wary as next week is full of potential hazards culminating with the Bank of England interest rate decision next Thursday. Rates are expected to stay on hold but this being the first meeting since the UK was officially back in recession, it will be interesting to see what stance the Bank will take to help boost the ailing UK economy, any mention of Quantitative Easing and a fall from the current highs could be seen.

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