GBPAUD rates hit their best level to buy Australian Dollars in 10 weeks earlier this week but yesterday’s data from the UK caused the Pound to weaken against all major currencies including vs the Australian Dollar.
The Bank of England announced that they would be keeping interest rates on hold but the central bank also suggested that further interest rate cuts could be coming.
The Bank is not as gloomy about the future as previously thought following the Brexit vote but they do expect the third quarter to have struggled.
Some analysts expect that we may see another interest rate cut at the next meeting due to take place in November and this is another reason why the Pound dropped during yesterday’s trading session.
The Reserve Bank of Australia’s governor Glenn Stevens will be stepping down this weekend and we could see a period of possible volatility as the change of leadership takes place. Current deputy governor Philip Lowe will replace him as of next week.
Over the last 10 years Stevens has managed to guide the Australian economy through the credit crunch and kept them away from falling into recession so it will be interesting to see how Lowe performs in the future.
On Tuesday the RBA will announce its latest set of minutes from its previous interest rate decision and any hints that another interest rate cut may be coming down under could cause further volatility for Sterling vs the Australian Dollar during the course of next week.
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