I hope you’ve enjoyed being kept up to date with our regular reports and found them both informative and useful to help you make the best decision as and when to move your currency. If you’re reading this down under Happy Australia Day for today and tomorrow but don’t forget us here in the UK enjoying our fair share of rain.
Anyway back to the useful information for this week. UK GDP figures are due out on Tuesday and with the last quarter measuring 1.9% for the UK I think the report is going to be rather positive for the UK economy as well as giving Sterling a big lift. After Friday’s Aussie fightback against the Pound I think we’ll see more pressure put on the AUD shortly after the report which is due at 93a0m. If GDP is strong this generally reuslt in strength for the currency concened.
The reason why I think the report will be good is because UK Retail Sales have seen the best results since 2004 and UK unemployment is now the best level since 2008. With UK unemployment measuring 7.1% this is closing in on the Bank of England’s target of getting the labour market below 7% in order to consider raising interest rates which also helps to increase the value for the Pound. However, after Mark Carney saying during Friday that to change rates now would be inappropriate I think the UK interest rate will remain at 0.5% for some months to come.
The FOMC will meet on Wednesday to confirm their current tapering plan which involves a reduction of USD10bn per month. As long as there is no change this could provide some short term support for the Aussie Dollar.
If you have a currency transfer to make and want to save money then contact me directly Tom Holian [email protected]