The Pound Sterling (GBP) has risen by 0.8% against the Australian Dollar (GBP/AUD) today as the last piece of US data prior to the Federal Open Market Committee’s (FOMC) Interest Rate Decision has been released.
All Eyes on the Eccles Building for Potentially Momentous FOMC Rate Call
The Pound Sterling’s (GBP) current uptrend against the Australian Dollar (GBP/AUD) is thought to be due to the swirling speculation over the FOMC decision this evening; while the US Dollar (USD) has dived against some competitors, the advances seen elsewhere show that division over the Fed’s actions is far-reaching.
This current state of tension will be relieved later on with the announcement itself; if a rise takes place, the ‘Aussie’ (AUD) can be expected to nosedive, while if no change occurs and the Fed keeps shtum on a possible rise within the year, the Australian Dollar and other commodity and emerging-market currencies may rise significantly in value.
Earlier…
The Pound Sterling (GBP) has trended narrowly against the Australian Dollar (GBP/AUD) today, something that has gone against Sterling’s overall advance following a batch of positive UK releases concerning Earnings and Employment.
UK Retail Sales to Set the Scene ahead of FOMC Interest Rate Decision
As the ‘Aussie’ (AUD) has effectively spent all of its major economic releases already this week, the only remaining announcements that are likely to affect the pairing are the UK Retail Sales figures for August (out tomorrow morning and forecast pessimistically) and the US Federal Open Market Committee (FOMC) Interest Rate Decision. In a welcome change, predictions have been for an actual increase in the rate from 0.25% this time round, with speculators alternately suggesting 0.38% or 0.44% as the new US interest rate.
Earlier…
The Pound Sterling to Australian Dollar (GBP/AUD) exchange rate has risen significantly today, a sharp contrast to the previous day of victories for the ‘Aussie’ (AUD).
GBP/AUD Exchange Rate News: BoE Minutes Provide Solace for Investors Interpreting UK Inflation Decrease
The Pound Sterling (GBP) has risen by 0.5% against the Australian Dollar (GBP/AUD) today, just one of several gains for Sterling. On the face of it, the Pound should have fallen this morning after the UK annual CPI for August dropped from 0.1% to 0% and the Core annual CPI for the same month decreased from 1.2% to 1%. As the results met forecasts they were unlikely to push the Pound into a major downtrend, but any Sterling losses were limited as last week’s Bank of England (BoE) minutes predicted that UK inflation will stay close to 0% for a few months before rising once again at the end of the year.
The Pound has risen by 0.3% against the New Zealand Dollar (GBP/NZD) and the Indian Rupee (GBP/INR) today, but has fallen by -0.3% against the Singapore Dollar (GBP/SGD), -0.6% against the Japanese Yen (GBP/JPY) and by -0.9% against the Russian Ruble (GBP/RUB).
All Change! Whirlwind PM Switchover is Mixed Blessing for Australian Dollar Exchange Rate, RBA Minutes Compound Problem
The Australian Dollar (AUD) has had a turbulent journey in the last 24 hours, rising across the board after former Australian Prime Minister Tony Abbott was replaced in the span of hours after a leadership spill was requested by the new Prime Minister, Malcolm Turnbull. In the same day that the vote was called, Abbott was ousted. Adding to the dramatic speed of events, Turnbull has been officially sworn in today. After the challenge and loss of Abbott were announced yesterday, the ‘Aussie’ rose against all of its competitors, sending the Pound plunging down from 2.1847 to 2.1524. This is likely due to the perception that Turnbull will provide a more stable hand to the economy, given that at least part of his predecessor’s unpopularity was due to poor economic decisions.
This morning, however, the Australian currency has fared poorly, mostly on account of the Reserve Bank of Australia (RBA) minutes from September 1st being released. The tone was dovish overall, with ‘caution’ being the watchword of the day. As with the recent BoE minutes, the RBA’s stance towards China’s economy was an observatory one, although unlike the former minutes, the RBA did not have a particularly strong economic outlook in store for the future.
The ‘Aussie’ has fallen by -0.5% against the Pound Sterling (AUD/GBP) and the US Dollar (AUD/USD) today and has printed a worse -0.6% against the Canadian Dollar (AUD/CAD) and the Euro (AUD/EUR).
GBP/AUD Exchange Rate Forecast: US Interest Rate to be Biggest Game Changer this Week
The Pound Sterling’s (GBP) next set of UK data comes tomorrow morning with the Claims, Earnings and Employment data for August and July; forecasts have been positive overall and the lack of influential Australian publications during the week will surely aid the Pound in the pairing. On Thursday, the US Federal Open Market Committee (FOMC) interest rate decision will be announced and unlike many previous predictions, speculation is currently for a hike from 0.25% to 0.38%. Should this occur, it is highly likely that the ‘Aussie’ (AUD) will dive against the Pound (AUD/GBP), as could many other commodity and emerging-market currencies.
Current GBP, AUD Exchange Rates
The Pound Sterling to Australian Dollar (GBP/AUD) exchange rate was trending in the region of 2.1653 and the Australian Dollar to Pound Sterling (AUD/GBP) exchange rate was trending in the region of 0.4620 today.
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