The Australian Dollar has held firm over the weekend and in today’s trading session against the Pound after the fightback which took place during Friday’s trading. It does remain rather vulnerbale though as we go into later this week.
The Federal Reserve will announce on Wednesday night their tapering plan and if it reins in more of its asset purchases as predicted we could see US Dollar strength and a sell off away from the Australian Dollar. If this happens we could see GBPAUD exchange rates improve later in the week.
One of the members of the Reserve Bank of Australia has said recently that the ‘Australian Dollar has not fallen enough’ even though it has moved by over 30% since its lowest point last year.
UK GDP figures are due tomorrow morning for the fourth quarter. The previous year on year data showed growth of 1.9% but I expect this to be greater as UK Retail Sales are at their highest level since 2004 and UK unemployment at its lowest level since 2008. This is all good news for the UK economy and with UK growth forecasts having been raised recently by the International Monetary Fund I would not be surprised to see further Sterling strength.
If you’re worried about the GDP and FOMC data releases want to save money compared to using your bank when buying currency then contact me directly Tom Holian [email protected]