GBP/AUD rates have dropped this week, with levels now dropping below 1.74 on the exchange. This move came about following a poll that indicated support for Scottish independence had grown, with figures indicating there was now 51% in favour of the Yes vote. This news immediately caused Sterling levels to drop, with the uncertainty over the economic repercussions of a breakaway causing the Pound to lose value against all the major currencies, with over a cent lost against the AUD from this week’s high.
The Pound has started to gain support around the current levels this morning and we may see a further realignment following positive UK, following positive Industrial and Manufacturing Production figures. We also had a speech by BoE governor Mark Carney who indicated that UK interest rates may be rising sooner than expected, news which is likely to counter any further Sterling losses.
Looking ahead to the rest of the trading week and the UK inflation report on Wednesday is worth monitoring, as is the Australian unemployment data which is released overnight on Thursday. These releases are likely to be key in determining any short-term spikes on GBP/AUD rates away from the current levels.
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