Following the gains seen yesterday for GBPAUD rates we have seen some profit taking this morning. This being the traders which have ridden the market selling off their positions to recognise their profits. This change in demand has had a knock on impact on the value of the currency hence the correction this morning which is very common to see. Some of this will also be following the confirmation of the replacement of Glen Stevens as the head of the Reserve Bank of Australia which has also been announced today. Deputy Governor Philp Lowe has been confirmed as his replacement creating some certainty and therefore further AUD strength.
Moving forward I would not be surprised if we see this correction continue slightly through today as both Europe and the US market trades on this movement. Tomorrow however I would not be surprised if it once again bounces back up, however don’t expect us to re-reach the highs we were enjoying yesterday. As with all SPIKES in the market the best levels are only available for a short period. To Register for SPIKE NOTIFICATIONS please email [email protected] with confirmation of your situation and contact details.
Next week we have a further host of economic data for the UK, this is expected to continue to the negative tone seen this week as the BREXIT concerns start to be reflected into the economy. Sterling weakness is generally expected. Australian weakness is also expected however as their political election starts to have an impact, plus these recent policy changes by the central bank starts to have an impact on their economy.
My forecast; next week GBPAUD rates 1.91-1.94 but by the end of the month I would not be surprised to see rates closer to 2.0.
For a full breakdown of when and how these levels are expected, so that you can take full advantage please do feel free to get in contact. [email protected] is the best email to use which comes directly to me for a personal response.