UK GDP figures this morning have come out at 1% for the third quarter compared to the expected 0.6% which has seen Sterling strengthen across the board against all major currencies. This also means that the UK is now officially out of recession and represents the best UK quarter for 5 years. Owing to the surprise figures we have seen a large movement on GBPAUD exchange rates which are getting close to hitting 1.56 later in the trading session. Many analysts have cited the Olympics as the catalyst to increased productivity and spending which has clearly supported the Pound which has struggled during October on a trade weighted basis compared to its major currency pairs.
The GDP have provided some short term excellent buying opportunities for those needing to buy Australian Dollars so if you have a currency requirement and would like to discuss the benefits of using an experienced currency broker please feel free to email me directly Tom Holian [email protected]
US Q3 GDP figures are due out tomorrow and expectations are for 1.9% so anything less could cause volatility across the board. If we see an improvement in the US data we could see more appetite for riskier currencies which could see some Australian Dollar strength during tomorrow afternoon’s trading session.
It is always interesting to hear points of view on what you think is driving the GBPAUD exchange rate so let me know what you think by emailing me Tom Holian [email protected]