Pound Sterling (GBP) Exchange Rate Movements Positive Over Previous Week on Rising Confidence in UK after ‘Brexit’
- The Pound to Australian Dollar exchange rate today: 0.24 per cent higher on the day at 1.74408.
- The Australian Dollar to Pound exchange rate: 1 AUD = 0.57337 GBP.
Confidence in the Aussie dollar weakened on Tuesday despite some better-than-expected building approvals figures, with risk appetite generally diminished thanks to the bullishness of the US Dollar.
This helped to outweigh the negative impact of the latest UK consumer credit and mortgage figures, despite these suggesting a more pronounced post-referendum impact, allowing the Pound to Australian Dollar exchange rate to make further gains.
The British pound (GBP) managed to reverse its previous losing streak last week, rising significantly against the Australian Dollar (AUD) over most of the week.
This came against the backdrop of a mixed set of UK data; the Confederation of British Industry (CBI) industrial trends for orders fell in August, but this was countered by a major rise in distributive trades (retail sales) in the same month.
Friday’s closing news was that Q2 GDP had been revised up, though this was taken sceptically by investors who saw it as the beginning of a major UK economic decline.
Latest Pound / Australian Dollar Exchange Rates
On Tuesday the Pound to British Pound exchange rate (GBP/GBP) converts at 1
At time of writing the pound to pound exchange rate is quoted at 1.
FX markets see the pound vs new zealand dollar exchange rate converting at 2.099.
Today finds the pound to us dollar spot exchange rate priced at 1.245.
NB: the forex rates mentioned above, revised as of 23rd Apr 2024, are inter-bank prices that will require a margin from your bank. Foreign exchange brokers can save up to 5% on international payments in comparison to the banks.
End-of-Week PMIs to Provide Clearer Picture on Post-‘Brexit’ Economy & Pound Sterling Outlook
The Pound may be in for a considerable crash from the middle of the coming week onwards, given that continued negativity is forecast for major UK ecostats.
While the GfK consumer confidence score for August is expected to ‘improve’ from -12 to -7, the UK’s manufacturing and construction PMIs for the same month are both forecast to remain in the sub-50 contraction range.
With the next Bank of England (BoE) news not due until the week after next, it remains to be seen whether the BoE will freeze, hike or slash the currently record low interest rate when they meet in September.
Australian Dollar (AUD) Exchange Rates Forecast Roundup: Closing Boost Received by ‘Aussie’ on Confusing Fed Comments
The Australian Dollar found itself in pleasantly high demand over most of the previous week, owing to the continued weakness of the US Dollar and supportive iron ore prices.
In the former case, the week’s big US event, the Jackson Hole Symposium, brought a disappointingly ambiguous speech from Fed Chair Janet Yellen, which ended up putting the US Dollar down and commodities currencies like the ‘Aussie’ in high demand.
Other news concerned the price of iron ore, which was recorded as the best performing commodity of 2016. Despite concerns of low demand during the G20 Summit in China, expectations were that orders from Australia would jump back up against shortly after the Summit ended.
Aussie Economic Outlook: Building Permits and Credit Stats to Impact Australian Dollar
The week to come is not set to be a data-heavy one for Australia, with Tuesday’s building permits result for July expected to rise from -2.9% to 2%.
The only other Australian news of note will cover July’s new home sales and private sector credit scores, both of which releases are due early on Wednesday.
Greater influence is expected to come over Thursday, when China releases its NBS and Caixin manufacturing PMIs for August; in both cases, declines have been forecast which may harm the ‘Aussie’.
Can AU Treasurer Morrison Deliver on Reducing AU Debt? GBP/AUD Exchange Rate's Future Value Depends on Positive Movement
Somewhat side-lined by last week’s iron ore and Fed news, Australian Treasurer Scott Morrison laid out his plans for the future of the Australian economy, focusing on tackling debt, among other issues.
Some were sceptical of Morrison’s ambition, with economist Saul Eslake stating;
‘ The Government says it expects Labor to engage on expenditure savings they have habitually blocked [...] whilst at the same time refusing to engage with Labor on revenue measures which the coalition in government has previously blocked‘