The Pound hit new lows against the Australian Dollar yesterday morning following the release of UK manufacturing data. Official figures showed a drop of 1.5% in January compared to December. This again points the UK closer to recession as this is likely to have a negative impact on GDP. Next week Chancellor George Osborne introduces the Budget to so all eyes will be on next week to see if the Chancellor can stimulate some growth for the UK. If the economy shrinks this month we’ll be back in recession and only the second time in a triple dip recession. the only previous time was shortly after World War II so it goes to show how bad the situation is in the UK.
Rates for GBPAUD hit below 1.44 yesterday but this morning the over reaction seems to have settled with Sterling recovering by approx 0.5% against the Australian Dollar this morning. Later today the US published retail sales so if things are positive this could send the AUD back towards 1.44. if America is strong this tends to promote investor confidence which means investors are more likely to buy Australian Dollars with increased appetite.
In order to be kept updated with such movement and to take advantage of beneficial exchange rates please email me directly Tom Holian [email protected] with ‘CURRENCY SPIKE ALERT’ in the title of the email. Please also outline your particular currency requirement and I’m confident I can offer you a saving on your currency transfer. I look forward to hearing from you.