Sterling Australian Dollar exchange rates tipped past 2 during the week as uncertainty continues in Europe and the continuing major problems facing Greece and the Eurozone.
Global investors will typically sell off riskier currencies including the AUD, NZD & ZAR when there is global instability which is one of the major reasons why we have seen Sterling hit close to 6 year highs against the Australian Dollar.
The Bank of England Quarterly Inflation Report which came out on Thursday helped to strengthen Sterling as BoE governor Mark Carney suggested that the UK can change interest rates when required although the likelihood is that interest rates will stay on hold during the course of 2015.
With the RBA having cut interest rates recently and PM Tony Abbott struggling in opinion polls things down under have started to experience a few problems hence the exchange rates moving as much as they have done recently.
On Tuesday we see the release of the RBA minutes and following on from the rate cut on 3rd February it will make interesting reading to see why the decision was made to cut rates and whether there is further scope to cut rates again.
I think we could see a few further gains for the Pound over the next few days whilst the Greek uncertainty continues.
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