GBP/AUD Exchange Rate Forecast to Hold Gains Even After CBI Reported Sales Misses Estimates
The Pound Sterling to Australian Dollar (GBP/AUD) exchange rate edged fractionally higher by around 0.1% on Monday afternoon.
Despite the fact that the solitary British economic data publication failed to meet with estimations, the Pound edged higher versus many of its currency rivals. December’s Confederation of British Industry Reported Sales data was projected to advance from 7 to 21, but the actual result only managed to reach 19. This is still a considerable improvement upon the previous figure, however, which may account for Sterling’s lack of depreciation. With traders settling down for the Christmas break, thin trading volume has seen heightened reaction to data which would ordinarily be low impact.
“It’s no surprise sales have recovered as we head into the final shopping days of the Christmas season,” Barry Williams, the CBI’s distributive trades chairman and chief customer officer at supermarket chain Asda, said. ‘It would be ideal if the industry could keep that momentum into the New Year but retailers know 2015 was tough, and they’re expecting 2016 to start in much the same vein.’
The Pound Sterling to Australian Dollar (GBP/AUD) exchange rate is currently trending in the region of 2.0756.
AUD/GBP Exchange Rate Predicted to Hold Losses despite Rising Chinese Stock Prices
Despite the fact that the Shanghai Composite Index ended the Asian session close to 1.8% higher, and irrespective of iron ore prices rising to breach $40, the Australian Dollar softened versus many of its currency rivals. The depreciation is mostly the result of soft demand for high-yielding assets with bearish crude prices weighing on trader risk-appetite. In addition, iron ore prices are not expected to hold recent gains for long with supply continuing to outstrip demand.
‘If you look at the way iron ore prices drop, it drops a lot quicker than when it rallies. So it could get to $US25 or in the $US20s in the next six months,’ said Kelly Teoh, an iron ore derivatives broker at Clarksons Platou Futures, who expects the price to average $US38.50 a tonne in 2016. Meanwhile, analysts at Goldman Sachs stated; ‘The iron ore sector may have to hibernate for an extended period before alternative steel markets in other regions take over from China.’
The Pound Sterling to Australian Dollar (GBP/AUD) exchange rate dropped to a low of 2.0701 during Monday’s European session.
Pound Sterling to Australian Dollar Forecast: GBP/AUD to see Volatility in Response to UK Consumer Confidence
With a complete absence of Australian economic data until late on Wednesday evening, the Pound Sterling to Australian Dollar (GBP/AUD) exchange rate will see volatility in response to British data and trader risk-appetite. Tuesday’s British GfK Consumer Confidence Survey for December has the potential to spark changes for the GBP/AUD conversion rate. In addition, UK Public Sector Net Borrowing data will be of interest. US data and commodity prices will also have a marked impact on the GBP/AUD pairing this week, especially amid thin trading volume.
The Pound Sterling to Australian Dollar (GBP/AUD) exchange rate climbed to a high of 2.0842 during Monday’s European session.
Comments are closed.