The pound has been having a good run of late, and after a few quiet days, it was given another big boost yesterday after inflation figures came out higher than expected, increasing speculation the Bank of England may raise rates sooner than many expect. With the RBA sounding a slightly more neutral tone again in their Minutes the other day it suggests sterling could be in for a few good days, although we will see how UK unemployment goes this morning to really judge how much momentum is building and will this be reflected in the BofE minutes next week, as so far no member has actually voted to hike in the UK.
Official UK GDP comes out on the 25th and again assuming this is strong I think the pound could edge up versus the Aussie slightly. Chinese data out overnight was pretty good but was unable to give the Aussie much of a boost.
The Euro is struggling again as Mario Draghi seems to be paving the way for the prospect of a European style Quantitative Easing, suggesting it was within the ECB’s remit to do so. Yesterday’s economic sentiment survey hit the Euro again after it came in below forecast. It will be interesting to see how European Inflation figures come out on Thursday because a weak showing could really ramp up the pressure for action from the ECB. In all I suspect the Euro could get into more trouble.
I suspect the RBA will not allow the Aussie to appreciate too much based on recent comments however I think there is plenty of room for Aussie gains versus the single currency in the coming months provided it doesn’t also rally too much versus the USD as well. So if you are transferring money from Australia to Ireland, or transferring money from Australia to anywhere in Europe for that matter, then there could be some good opportunities coming your way.
If you need to buy or sell Aussie Dollars and would like assistance in getting the best exchange rate then please feel free to email Colm at [email protected] and I would be happy to explain how our services work.