Investors have adopted a bearish tone towards the Pound over the past few trading sessions, as not even poor employment data out of Australia could push the GBP/AUD upward over the days session.
Sterling had got off to a good start after Aussie Dollar weakness due to the news release down under early this morning, but it’s since dropped by almost 2 cents as Tuesdays weak Inflation data is continuing to weigh on the Pounds value.
Personally, I think that anyone with a currency requirement involving the Pound should be aware of the negative effects of Tuesdays figure on sentiment towards the UK economy and therefore, the Pound. Inflation is measured by the Consumer Price Index and the CPI figure came out below economists expectations and this has dampened any remnants of positive sentiment towards the UK economy at present.
Today the UK released some better than expected Retail Sales Figures, yet despite beating economists expectations the Pound has still struggled to gain any positive momentum and I think this is an indication of the health of the Pound at the moment.
I expect the Pound to fall once again as there is still room for for profit taking after it’s upward movement from the low 1.70’s over the recent months since the Brexit vote. At the same time either the Bank of England or the Reserve Bank of Australia could cut interest rates once again so anyone with a currency requirement involving both currencies should be aware of this.
If you want to be kept up to date on the markets and you would also like to ensure that you are getting the very top levels of exchange for an imminent currency transfer or even a longer term one then I can help you with this.
Not only do we give clients up to date market information but we all work for one of the largest and longest serving currency brokerages in the U.K, so even if you have dealt with your current broker or bank for a long time I would be surprised if I could not show you a saving over what they are offering you – You can email me (Joseph Wright) directly on [email protected] and I will be more than happy to contact you personally to discuss the various options we have available to you.