AUD recovers following inflation figures (Mike Vaughan)

AUD to GBP Sees Losses as UK Moves Ahead on Vaccines

This mornings weaker inflation figures led to some strong AUD weakness overnight but the pound was to slip back below 1.81 following the release of the Bank of England minutes which did highlight an improved growth forecast but the minutes again showed the MPC were unsure on how much scope Britain’s economy had to grow without generating inflation. This would to many suggest that an interest rate hike could well be something not too far around the corner, however most analysts were maybe expecting a slightly more hawkish stance from the Bank of England minutes but following the release analysts are still forecasting mid 2015 before the bank considers making its first move which pushed sterling exchange rates down following the 09:30 release.

Looking for the rest of the week watch out for US initial jobless claims figures tomorrow afternoon for an impact on global risk appetite and UK retail sales figures released on Friday at 09:30. Last month these figures were much stronger than forecast lending some good support to the pound, should Fridays data be the same then Friday could be a good day to buy AUD particularly with it being ANZAC day and the markets in Australia closed.

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