The Pound Sterling to Australian Dollar (GBP/AUD) exchange rate has performed poorly recently, with the worsening condition of the UK’s steel industry acting as a catalyst for the wider issue of government intervention in declining national sectors.
UK Economic News: Steely Resolve Required among UK Politicians
The Pound (GBP) has been a generally undesirable prospect so far today, due to domestic issues in terms of information and industry.
On the former front, the recently announced finalised current account for the fourth quarter has shown a record widening of the deficit. This was compounded by the overall 2015 figure, which showed the worse deficit since records began in 1948.
Regarding industry, the UK remains in a state of crisis, given the current lack of resolution for the fate of the Tata steelworks in Port Talbot. With the House of Commons currently on Recess until April 11th, a scattering of ministers are due to hold an emergency meeting on what can be done to secure a supposedly vital aspect of the UK economy.
The PM has stated that the government is doing ‘everything it can’ to preserve the thousands of jobs at stake, but has also admitted that he can offer ‘no guarantees of success’.
The Pound has fallen by -0.2% against the Australian Dollar (GBP/AUD), -0.3% against the Euro (GBP/EUR) and -1% against the Russian Ruble (GBP/RUB) today, while in most other cases Sterling has trended in a tight range.
Australian Dollar (AUD) Movement Stable Today after Supportive National Data Releases
The Australian Dollar (AUD) has been on the ascent of late, with a dovish speech from Federal Reserve Chair Janet Yellen earlier in the week serving as additional support to the earlier range of positive Australian economic announcements.
Among these were the ANZ activity outlook for March and the private sector credit stats for February, both of which rose on previous printings.
The Australian Dollar has recorded gains of 0.2% against the Pound Sterling (AUD/GBP) and 0.4% against the US Dollar (AUD/USD) today.
Forecast: ‘Aussie’ Manufacturing Stats due during Australasian Session, UK Variant Follows Tomorrow
The near-future will bring a pair of high-impact manufacturing announcements from the UK and Australia, with the latter nation getting first say.
This will be in the form of the AiG performance of manufacturing index for March, which previously came in at 53.5 points.
The UK’s Markit PMI for Manufacturing in March is due tomorrow morning, and is expected to rise from 0.8 to 51.2 at the time of writing.
Current GBP, AUD Exchange Rates
The Pound Sterling to Australian Dollar (GBP/AUD) exchange rate was trending in the region of 1.8734 and the Australian Dollar to Pound Sterling (AUD/GBP) exchange rate was trending in the region of 0.5339 today.
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