GBPAUD exchange rates have risen today by almost a cent after Greece announced that their economy has shrunk by 7.2% in the third quarter compared with 12 months ago. This was even worse than the previous quarter which saw the economy contract by 6.3%. Greece has been in recession for four years now and has been one of the problem regions across the Euro zone. With their third tranche of bailout funds due next week this could provide some stability and encourage investors to look at buying Australian Dollars again but for the next few days I think we could see a return of strength for the Pound.
In the UK’s Quarterly Inflation Report this morning Mervyn King suggested that economic growth will struggle for at least the next three years. Even though previous quarter’s figures showed a growth of 0.9% Mervyn King said that output could fall away in the quarter we’re in at the moment. The impact this could have on exchange rates could be negative for Sterling if these comments end up coming true as confidence will be lost for the Pound and therefore we could see Australian Dollar strength meaning less AUD for your GBP.
Tomorrow is a huge day for the currency markets as both France and German GDP is released. If the results are lower than anticipated we could see Euro weakness which in turn could see Sterling improve against all majors an investors look to the Pound as a safe haven currency. First thing we see the release of Australian Consumer Inflation Expectation figures so if you’re thinking about buying Australian Dollars soon then get in touch to see how we can help save you money when transferring currency. Tom Holian [email protected] and I look forward to hearing from you.