With the opening ceremony for the Olympics just a few short hours away Sterling vs Australian Dollar exchange rate has remained relatively quiet this morning. The good news for buying Australian Dollars is that the Pound has recovered and we are now seeing rates getting closer to 1.51 having dropped into the 1.49s earlier this week. UK GDP out on Wednesday was measured at -0.7% much lower than expected and lower than the previous quarter measured at -0.3%. This is not good news for the UK economy so it could be suggested that an interest rate cut or further QE could help our ailing economy and Sterling weakness across the board could drive an export led recovery. It is unlikely that the Sterling Euro exchange rate will fall as the problems in Spain seem to be growing on a weekly basis but I would expect GBPAUD to drop below 1.50 during August particularly if the Bank of England do not go down the line of further QE. The lowest I anticipate GBPAUD to trade is 1.4750 as anything lower than this could have a negative impact on the Australian economy and the highest 1.53 if next week’s British data releases are better than anticipated.
Yesterday David Cameron defended UK’s economic policies by saying the government has acted ‘decisively to restore confidence in its public finances.’ Labour attacked the figures and claimed that the current government’s plans had not worked. This hasn’t had much effect on the markets but as usual with currency the movements will occur following political or economic events so if you have any queries or questions please do not hesitate to contact me [email protected] or if you have a currency transfer to make and would like to ask me how to save money when buying currency feel free to ask me a question. Please aways remember to quote ‘AUSTRALIAN DOLLAR FORECAST’ in the subject title of the email.