Australian Dollar Forecast Best Rates AUD to GBP
The International Labour Organisation has warned that the Eurozone could lose 4.5 million jobs over the next four years if the continent continues with its austerity measures. With many countries already cutting workforces in the public sector the current plan could also have a huge negative impact on the value of the Euro. The recent news has seen Sterling hit a four year high against the Euro and the Australian Dollar the highest against the Euro since its creation. This had led investors to move money away from the single currency to the Australian Dollar to in search of safer and higher yields of interest. With the Reserve Bank of Australia keeping interest rates on hold this month this had led to further strengthening for the AUDGBP exchange rate.
The ILO has recommended that lending to small businesses should increase and guaranteeing unemployed younger people training, education or work placements. This all sounds good in principle but without having money in the first place and ever increasing debt it will be difficult for the Eurozone to implement these plans. If Germany opens its bank to the rest of the continent we could see the area stabilise but if not it is difficult to see an end in sight and with further bailouts anticipated we could see the Euro Aussie rate continue to challenge these record highs. AUDUSD is also close to parity with expectations to break through soon.