UK GDP released today at 0.6% growth was tipped to offer a good window of Sterling strength. Surprisingly then as the figure was double that of quarter 1, we saw Sterling weakness. It is a bit concerning for the Sterling side of the currency pair, as it is a bit of a vote of no confidence for the UK economy.
This month has seen a brief resurgence for AUD against GBP. That being said GBP has taken nearly 20 cents from AUD over the last two months, and looks to continue towards 1.70. Next month’s interest rate decision on Tuesday 6th August could weaken AUD further and we may see 1.70 at this point.
Should you hold AUD, I would be tempted to sell the currency, avoiding the gamble of potential unfavourable market movements.
Please feel free at any point to drop me a line, whether you are looking to buy or sell AUD.
Have a good evening!
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