GBP/AUD Conversion Rate Predicted to Soften after UK Loans for House Purchase Data Unexpectedly Declined
The Pound Sterling to Australian Dollar (GBP/AUD) exchange rate softened by around -0.3% on Thursday afternoon.
Although BBA Loans for House Purchase data failed to meet with forecasts, the Pound ticked fractionally higher versus most of its currency rivals today. November’s Loans for House Purchase was expected to rise from 45463 to 46000, but the actual result was 44960. As the only British data for today, the report had heightened impact given thin trading volumes.
Whilst the mortgage data failed to meet with the median market forecast, the result is still considered robust and expectations of more improvement in 2016 has allowed the British asset to make moderate daily gains versus most of its major peers. ‘These statistics show the continued strength of the mortgage market, with monthly new lending higher than at any time over the past seven years,’ BBA chief economist Richard Woolhouse said.
The Pound Sterling to Australian Dollar (GBP/AUD) exchange rate is currently trending in the region of 2.0513.
AUD/GBP Exchange Rate Forecast to Hold Gains after on Improved Trader Risk Appetite
Although the lack of liquidity in the foreign exchange market has seen increased volatility, market sentiment has improved today. This is mostly the result of rising crude prices after yesterday’s US stockpiles data showed inventories had fallen beyond expectations. The Australian Dollar benefited from increased risk-appetite as well as the rising price of key commodities including gold.
Also aiding the ‘Aussie’ (AUD) uptrend was October’s Conference Board Leading Index, a composite index used to forecast short to mid-term growth in the Australian economy, which bettered the previous figure of -0.3% with the actual result reaching -0.1%. In response to the data, RTT stated; ‘Among the individual components, the positive contributors to the index included share prices, money supply, the yield spread and gross operating surplus.’
The Pound Sterling to Australian Dollar (GBP/AUD) exchange rate dropped to a low of 2.0439 during Thursday’s European session.
Pound Sterling to Australian Dollar Forecast to Fluctuate on US Data
Later today there will be a number of US data publications with the potential to provoke currency market fluctuations. US Dollar positioning has a big impact on the Australian Dollar, so US ecostats will have a particular impact on the GBP/AUD exchange rate. US Initial Jobless Claims and Continuing Claims data will have the greatest impact on the Pound Sterling to Australian Dollar exchange rate. With a complete absence of domestic data pertaining to both the UK and Australia on Christmas Day the exchange rate is likely to see movement in response to market changes.
The Pound Sterling to Australian Dollar (GBP/AUD) exchange rate reached a high of 2.0566 during Thursday’s European session.
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