It’s likely to be a volatile day for GBP/AUD exchange rates, with the markets braced for ‘Super Thursday’.
At Midday we have the latest Bank of England (BoE) interest rate decision, the subsequent minutes, the latest Quarterly Inflation report and a speech by BoE governor Mark Carney. With so many key releases we could see big swings on GBP/AUD rates throughout today, so it would be wise to stay in touch with your personal currency broker to ensure any opportunities are not missed.
Whilst interest rates are likely to be kept on hold at 0.25% and there is unlikely to be a change in our central bank’s monetary policy (QE) stance, it has been muted that the BoE could raise the UK’s growth outlook in its latest inflation report and as such this could help boost the Pound’s value against the AUD, which has taken a knock overnight.
The AUD had lost ground yesterday, with the Pound gaining over a cent at the high and this was due to comments made by the former EU ambassador who believes UK Prime Minister Theresa May is bluffing and the UK will not leave the single market following Brexit.
Whilst many will say these comments hold little weight the markets reacted positively, however Sterling’s gains were eliminated overnight following Australian Import/Export data. This is considered a key release by investors due to the Australian economies reliance on this sector and as such the positive figures gave the AUD a boost.
GBP/AUD rates have now dropped below 1.66 and the Pound may struggle to break back through 1.70 over the coming days, despite yesterday’s developments regarding the UK’s Brexit.
Last night MP’s voted that Theresa May could start Brexit negotiations as of today and the PM also confirmed that she will be publishing her proposed Brexit white paper, which should give us further insight into how the government will try and facilitate our exit from the EU.
With so many unanswered questions I would be wary about gambling on the current market and I still feel Sterling is unlikely to sustain any aggressive gains over the coming weeks.
If you have an upcoming GBP or AUD currency transfer to make and are concerned about the current market instability, or simply wish to compare our award winning exchange rates with your current provider, then please feel free to contact us on 0044 1494 725 353 and ask one of the team for Matt.
Alternatively, I can be emailed directly on [email protected] and can answer any queries you have about the current market trends & forecasts.