The pound shot up against the Aussie Dollar this morning after the UK unemployment rate came down sharply once again. The official figures show the UK unemployment rate standing at 7.1% compared to expectations of 7.3% – only middle of last year it was near 7.8%. Given that the Bank of England will start considering an interest rate rise when the rate touches 7% we could be getting much closer to a more valuable pound. Most UK data lately has been exceptionally good, so there is no reason not to expect anything other than a strong showing in next weeks GDP figures.
In contrast Australian jobs data was dissappointing last week and the currency has come under pressure from the US Fed beginning to ease their QE program- the next Fed meeting is next week, and with important data for China, Japan, and New Zealand all coming up it could be a volatile week in Asian and antipodean markets! Given the huge swings in value we have had in the last week for GBP AUD then my gut feeling would be to set a limit and wait for a spike back in favour over the coming weeks but I wouldnt hang on too long as the pound looks like it is gathering serious momentum at the minute. If you would like more assistance with a currency transfer please feel free to call Colm on 01494 787 478 or email [email protected] and I would happy to give you my assesment.