The Australian Dollar has shifted sharply against the pound today following much stronger than expected retail sales figures this morning to follow on from stronger GDP figures on Tuesday. The shift has been in excess of 1% with the high low ranging from 1.8624 to 1.8390. Some of the moves will also have come about following the ECB interest rate decision and subsequent press conference from Mario Draghi. The European Central Bank left interest rates on hold and unveiled no other measures to bolster a fragile euro zone recovery on despite forecasting low inflation for years to come. Inflation has been in what Draghi calls the “danger zone” below 1% for five months now and was running at 0.8% at the last count.
The new forecasts saw the euro zone economy growing by 1.8% in 2016 after 1.5% in 2015 and 1.2 %this year, a slight upwards revision from its previous 2014 estimate. This has lent support to the Euro, but seen a big shift back in favour of riskier currencies such as the Australian dollar, with the Aussie gaining 0.5% against the Euro back to 1.5225. The moves continue the unpredictable nature of the dollar, a trend that may will continue. This makes keeping in contact with your account manager even more important to take advantage of a strong shift in the market.
Should you have an upcoming bank to bank money exchange to arrange and you would like to discuss the current market trends and the timing of your transfer then please get in touch. As a specialist foreign exchange broker we have multiple contracts to help our clients maximize their exchange. To find out more information on the full currency service we provide please email Mike at [email protected]