- Sterling slumps against the ‘Aussie’ – Chaotic Conservative and Labour situation blamed
- UK currency strong elsewhere – Yesterday’s relief rally continues
- Australian Dollar steady overall despite home sales result – Major decline recorded for May printing
- UK GDP stats out tomorrow – Australian credit results incoming
The British Pound has been a mixed option against the Australian Dollar today, although in other pairings, demand for Sterling has remained consistently high.
In terms of ‘Aussie’ movement, the antipodean currency has been a generally safe bet, with poor domestic data doing little to dent the currently high appeal of the Australian currency.
UK Economic News: GBP Appreciates as Battles Continue for Control of the Country
The Pound has been an unsteady option against the Australian Dollar (GBP/AUD) today, having trended around opening levels since the start of the day.
Sterling’s latest movement has been largely a reflection of the latest political developments in the UK; although optimism is still present that a stable leader will be found for both major parties, the facts point to a tense struggle between former friends and colleagues as the leadership of the Conservative and Labour parties remains up for grabs.
In a recent extraordinary development, Scottish National Party (SNP) officials have called for the SNP to replace Labour as the official opposition, with MP Pete Wishart stating that:
‘The parliamentary rule book, Erskine May, makes clear when it refers to the official opposition as being “the largest minority party which is prepared, in the event of the resignation of the government, to assume power”. Following the loss of two-thirds of its shadow cabinet, it is clear that the Labour Party fails this test’.
Australian Dollar Advances Overall as Home Sales Drop Off
The ‘Aussie’ has been a generally favourable option lately, with gains coming partly from upticks in the price of gold and platinum.
Domestic data from Australia hasn’t been particularly supportive for the ‘Aussie’; while forecasts had been for a rise from -4.7% to 5.1% for the HIA new home sales result in May, the reality saw a far worse ‘improvement’ with a shift to -4.4%.
In terms of pairing movements, the Australian Dollar has fallen by -0.2% against the Pound (AUD/GBP) but risen by -0.4% against the Chinese Yuan (AUD/CNY) and by 0.5% against the US Dollar (AUD/USD).
Future GBP, AUD Forecast: UK GDP out Tomorrow, could Sterling Rally Continue?
The Pound is expected to be influenced tomorrow by a range of domestic data releases, although the most notable of these is forecast to be the finalised GDP printings for the first quarter.
In this area, no change is expected, with reprints of 0.4% on the quarter and 2% on the year on the cards.
While this will be main event, the Pound could also be impacted by Q1 total business investment, which is expected to have fallen on ‘Brexit’ concerns.
From Australia, tomorrow will bring private sector credit results for May, which are expected to rise from 0.5% to 0.55% on the month.
Current GBP, AUD Exchange Rates
The Pound Sterling to Australian Dollar (GBP/AUD) exchange rate was trending in the region of 1.8072 and the Australian Dollar to Pound Sterling (AUD/GBP) exchange rate was trending in the region of 0.5536 today.
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