GBP/AUD rates have dropped during Tuesday morning’s trading, with the pair now floating around 1.93 on the exchange. We have seen Sterling drop against most of the major currency pairs this morning and with Bank of England (BoE) governor Mark Carney concerned over the current inflation levels in the UK, we may see Sterling lose some of its recent momentum over the coming days.
We also had the latest Reserve Bank of Australia (RBA) minutes released overnight, which indicated the central bank would cut rates further if necessary, despite concerns over house price inflation. This comes after the RBA kept interest rates on hold during their last vote, despite calls for another rate cut.
There’s a host of key economic data out for both the UK & Australia this week, starting with the latest UK unemployment figures and BoE minutes. Unemployment levels are expected to improve but if they come out worse than expected expect the Pound to lose further value. The BoE minutes are always considered a key market mover as they give us an insight into the central banks policies and may provide an indication of when the central bank will look to raise interest rates.
We also have the latest RBA bulletin overnight on Thursday but it is likely to be RBA governor Glenn Stevens speech on Friday, which will dominate headlines as we head into the weekend. He has been fairly downbeat of late do it will interesting to see if he continues to talk down the Australian economy, with the RBA committed to lowering the AUD’s value over recent months.
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