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Pound Sterling to Australian Dollar (GBP/AUD) Exchange Rate Rises despite Ballooning Flood Cost Estimates

Pound Sterling Currency Forecast

The Pound Sterling (GBP) has risen by a small amount against the Australian Dollar (GBP/AUD) today, although the UK currency has otherwise been harmed today by escalating estimations from economists and insurance agencies over the final cost of the recent flooding to the UK economy.

Last Australian Economic Publication of 2015 Out Tomorrow, More UK Data on January 4th

The next piece of data to affect the pairing will come from the Australian side, with the release tomorrow of the Australian Private Sector Credit figures for November. At the time of writing, forecasts were for a decline on the month from 0.7% to 0.6% but a rise on the year from 6.7% to 6.8%.

Earlier…

The Pound Sterling to Australian Dollar (GBP/AUD) exchange rate has fallen greatly today, along with the Pound (GBP) against a majority of its other opponents. This comes at a time when investors in both currencies have been unable to refer to any domestic data to base their decisions on.

GBP/AUD Exchange Rate News: Pound Sterling’s Value Submerged as UK Flood Cost Estimates Appear

The Pound Sterling (GBP) was trending narrowly earlier, although this has since deteriorated greatly across the board. In a time when domestic data is short on the ground for most of the major currencies, ongoing developments in flood-hit areas of England have been the focus for both economists and news outlets. Although the run up to Christmas Day was marred in some parts of the country by flooding caused by Storm Eva, the latest news that Storm Frank is following in its wake has only added insult to injury for many living in northern England, Ireland and Scotland.

The most recent development has been the estimate that the overall cost of the flooding to the nation could be in excess of £5.8bn.

The Pound Sterling has fallen by -0.4% against the Euro (GBP/EUR) and the US Dollar (GBP/USD) today, with greater losses of over -0.5% being recorded against the Norwegian Krone (GBP/NOK) and the Australian Dollar (GBP/AUD). This has been a far greater deterioration than that seen by the Pound on Christmas Eve.

Australian Dollar (AUD) Uptrends Today as Governmental Reshuffle is Forecast

The Australian Dollar (AUD) has been rallying today, despite being in the same data-deficient situation as the Pound Sterling (GBP). The ‘Aussie’ has risen so far by 0.2% against the Chinese Yuan (AUD/CNY), 0.3% against the Euro (AUD/EUR) and over 0.5% against the Canadian Dollar (AUD/CAD) and the Pound Sterling (AUD/GBP).

The most recent news likely to have had an impact on the Australian economy has been the announcement that two of Australian PM Malcolm Turnbull’s cabinet, Mal Brough and Jamie Briggs, have stepped down. This has prompted speculation that Turnbull will initiate a cabinet reshuffle, which has the potential to instil new energy into his country’s administration.

GBP/AUD Exchange Rate Forecast: Last UK and Australian Data of 2016 due Tomorrow and Thursday

The current week holds little more for either currency in terms of domestic data releases, but both currencies will still be affected by one last set of economic announcements apiece.

The UK may be moved tomorrow by the Nationwide House Prices for December, which cover both the year and the month. At the time of writing, forecasts were optimistic in both instances, with respective rises from 3.7% to 3.8% and from 0.1% to 0.4% being on the cards.

Australia will have representation on Thursday with the monthly and annual Private Sector Credit results for November. Predictions were mixed as of writing, with a loss from 0.7% to 0.6% being forecast for the monthly printing and a rise from 6.7% to 6.8% for the yearly outcome.

Current GBP, AUD Exchange Rates

The Pound Sterling to Australian Dollar (GBP/AUD) exchange rate was trending in the region of 2.0402 and the Australian Dollar to Pound Sterling (AUD/GBP) exchange rate was trending in the region of 0.4903 today.

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