- Sterling falls on lower consumer and producer price expectations
- UK unemployment data tomorrow and the impact of Brexit
- GBPAUD exchange rates fall back to 1.75 ranges, further losses ahead?
Is now a good time to buy AUD?
The prospect of further gains for GBPAUD is looking less likely in the near future. Today’s economic releases are indicative of just how investors are gauging the post-Brexit uncertainty. Consumer price and Producer price indexes both came in positive but below expectations, exchange rates reacted aggressively.
Tomorrow’s unemployment data could serve further losses to Sterling, especially given the negative business sentiment post-Brexit.
Unemployment could rise following Brexit
Business conditions in the UK were the center of media attention following Brexit. With much of the uncertainty focused around free trade, EU employment and the general future relationship with the EU, I would not be surprised to see an increase in unemployment tomorrow and as a result, a fall in Sterling’s value.
It’s also difficult to envisage positive wage growth tomorrow, and as a result GBPAUD exchange rates could fall to the mid or low 1.75.
Will GBPAUD exchange rates improve?
I am of the view that the impact of Brexit has begun to soak into the UK economy, whilst there does remain opportunities for Sterling, it does appear to be struggling to break significant barriers in a post-Brexit environment.
Whilst hopes of a FED hike are growing, which could help GBPAUD exchange rates in the near future, the FED have reluctantly acted on their promise which casts doubts that one will happen in the near future.
If you need to buy Australian Dollars in the weeks ahead, I would consider doing so sooner rather than later. If you need to make a transfer, I will be able to assist you in getting the best rates on the market. Email me at [email protected] for more information and I’ll be happy to assist you.