Positive UK employment figures from earlier this morning has sent Sterling through 1.70 against the Australian Dollar after the last few days where we have seen Australian Dollar strengthen against the Pound in the run up to the Australian election this weekend. Indeed, the rate of UK unemployment has dropped to 7.7% between May and June from 7.8% in the three months before.
Previously, Mark Carney has been quoted as saying interest rates are unlikely to rise in the UK until unemployment drops to 7% or below and this is not likely to happen until 2016. The positive news this morning means that Sterling could strengthen again across the major currencies including the Aussie. The number of people now working part-time in the UK is the highest seen since 1992 when records began and more than double the figures seen 5 years ago which is why the figures look positive. The Office for National Statistics have suggested that the records this morning are 95% accurate to a plus or minus 85,000 people in the UK.
Tomorrow sees Australia releasing their own set of employment figures so anything less than expected could result in Aussie Dollar weakness.
The Australian election this weekend remains the potential banana skin for GBPAUD exchange rates so if you have a currency requirement and want to take advantage of current rates then feel free to contact me for a free quote when buying or selling Australian Dollars. Tom Holian [email protected]