Sterling has had a tough week so far vs the Australian Dollar with GBPAUD exchange rates now trading below 2 during today’s trading session.
Commodity prices have all seen a recent rise and with oil prices rising this has also led to the Australian Dollar strengthening owing to its reliance on commodity prices and a bounce back for the global economy which was looking very unsteady during the last fortnight.
However, the big news for the British economy is the fear of a Brexit and Sterling has fallen against all major currencies.
Prime minister David Cameron is in Europe this week and will meet tomorrow to discuss the EU reform deal. Clearly Cameron wants to stay in Europe but wants to see a change and the uncertainty surrounding the issues is what is causing Sterling’s demise at the moment.
Even with UK unemployment this morning coming out much better than expected the Pound has suffered owing to the lack of confidence.
By Friday of this week we could have an answer and depending on whether we do or not we could see a date announced for a referendum to take place.
The current expectation for the referendum is by June although he does have until the end of 2017 to decide.
Tomorrow sees the release of Australian unemployment data so we could be back above 2 on the mid-market level if the figures come out worse than expected.
If you have a currency transfer to make and want to save moony on exchange rates compared to using your own bank then contact me directly for a free quote. Tom Holian [email protected]