The UK’s consumer price index came out this morning fell from the previous month from 2.9% in June to 2.8% in July. According to the Office for National Statistics the rate of the retail price index also fell from 3.3% to 3.1%. Both announcements are welcome news for the UK economy and comes in line with Mark Carney’s recent policy announcements about forward guidance.
Both reports came in close to expectation so the currency markets and exchange rates have not moved by too much this morning as Sterling Aussie exchange rates remain fractionally below 1.70. US Retail Sales are due out today at 130pm UK time so if the announcement comes out different to the data anticipated we could see some volatility particularly on GBPAUD exchange rates.
Turning the focus on to the UK again the Royal Institute of Chartered Surveyors has shown that new buyer enquiries have hit the highest level in three years and general buying enquiries the highest seen since 2006. This is again good news for the UK and with recent positive data over the last few weeks my personal feeling is that we only need one more piece of positive news for the UK in order for GBPAUD exchange rates to tip over 1.70.
A Westpac consumer confidence survey is released tomorrow and I think this will be negative so if you’re considering buying Australian Dollars feel free to contact me so I can explain how to help you save money when exchanging currency. Tom Holian [email protected]