Sterling opened this morning almost as poorly as this morning’s weather! Prior to this morning’s trading session, GBP-AUD was flirting with the 1.75 mark and reached a day high of 1.7482. The shift back is entirely down to GBP weakness, as Sterling has weakened against most currencies. That being said, Sterling is still at very strong levels considering April / May saw us testing 1.50!
The markets expected last night’s release of US Federal Reserve Minutes of their recent meeting to move rates substantially. As the FED did not give any indication as to when they will reduce their current money stimulus programme, the anticipated move of currency internationally did not happen. Therefore the commodity currencies this morning have not had a boost from investors moving their money between AUD ZAR NZD and USD.
I believe that over the coming weeks the rate will be range bound between 1.73 and 1.76. Tomorrow the UK GDP revision may weaken or strengthen Sterling, depending on whether there is an amendment to UK growth for previous quarters.
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