Why is the Australian Dollar still strong against Sterling?

AUDGBP Lower as Retail Sales Slump Down Under

GBPAUD AUDUSD AUDGBP USDAUD Foreign Currency Exchange Rates for the Australian Dollar GBP to AUD

The Australian Dollar remains strong against the Pound trading at levels of 1.55 this week as we come towards the end of the month. With Meryvn King rather pessimistic about the UK economy and hinting that the economy could face problems for the next 5 years we could see Sterling exchange rates drop against the Australian Dollar. However, he did point out that Asia and other emerging markets are struggling which could in turn have a detrimental effect on the Australian economy which has relied on China in particular for its rapid growth over the last few years. Mervyn King went on to say ‘over two years now we have seen the situation in the euro area gt worse and the problem being pushed down the road…there is just enormous uncertainty o

ut there, I have no idea what is going to happen in the euro area.’ If the Governor of the Bank of England doesn’t know what will happen next it is difficult for anybody else to know what to do especially when it comes to making a decision over when it best to secure your foreign currency.

Yesterday, Angela Merkel spoke about the shared liability for the Euro Zone and tomorrow it will be important to see how the summit finishes. For up to date information about how the summit is affecting exchange rates when buying Australian Dollars please contact me [email protected] quoting ‘Australian Dollar Forecast’ for preferential rates.