GBP/AUD Rates Rise During Friday’s Trading (Matthew Vassallo)

AUDGBP: Australian Dollar Weakens in Worst COVID-19 Day Yet

GBP/AUD rates have spiked by almost a cent during Friday’s trading, following  a host of key data releases for the UK yesterday. The pair have hit 1.9026 at today’s high, having been held under the 1.90 threshold for much of the trading week.

Sterling has found some support across the board over the past 24 hours, following the release of the latest Bank of England (BoE) interest rated decision and subsequent minutes. Despite rates being held at 0.5%, this is now 7 years without a change in our base rate, the Pound spiked during the BoE minutes. I believe investors had started to factor in the possibility of a rate cut over the coming months but the indication is that the BoE feel the current economic climate is still strong enough to withhold this. This in turn boosted market confidence and the Pound benefited as a result.

This move comes despite the Australian unemployment rate coming better than expected at 5.8% yesterday. With tensions surrounding the UK recovery and the on-going effect of June’s EU referendum, I wouldn’t be gambling too much on further sustained improvement.

If you have an upcoming GBP/AUD currency requirement and are keen to discuss the current market conditions and forecasts, or simply wish to compare our award winning exchange rates with your current provider, then please feel free to contact me directly on 0044 1494 787 478 and ask one of the team for Matt. Alternatively, I can be emailed directly on [email protected]