Inflation figures came out lower than expected this morning which saw GBPAUD exchange rates drop below 1.70 shortly after the announcement. However, although Sterling dropped against the Euro and US Dollar it actually saw a fightback during the later part of today’s trading session. Concerns down-under were felt as a business confidence survey dropped to its lowest level in 2 years and subsequently Sterling has rallied to 1.71+ this afternoon.
Tomorrow the Bank of England published its Quarterly Inflation Report and with the ECB recently cutting interest rates last week owing to some low inflation on the continent any drop could see Sterling exchange rates drop as it means the Bank of England will be less inclined to increase interest rates. Currently the Forward Guidance policy put in place by Mark Carney involves only changing interest rates if UK unemployment drops to 7%. At the moment unemployment is unlikely to drop to these levels until 2015.
If you would like to save money when buying Australian Dollars feel free to contact me directly Tom Holian [email protected]