The British Pound (GBP) has slumped to 1.7000 (0.5885) depreciating for the second week running against the Australian Dollar (AUD) hit hard as it clocks a new November 2017 low. No tier one data published over the week made for subdued action, the pair sticking to areas around 0.5900 (1.6950) for most of the week. A real fear is starting to develop over rising inflation in the UK with new reports suggesting it could peak as high as 22%. Continued rises to gas and electricity prices over the winter months could be catastrophic not just for consumer prices but also the value of the Pound. The GBP is threatening to make it a very bleak few months for UK importers if the GBP collapses. Looking ahead we have RBA policy release and interest rate Tuesday and Aussie GDP q/q with 0.8% predicted. By mid-next week we could be pricing the cross at 0.6000 (1.6660) levels.
The current interbank midrate is: AUDGBP 0.5880 GBPAUD 1.7006
The interbank range this week has been: AUDGBP 0.5865- 0.5927 GBPAUD 1.6871- 1.7050