For most of the week the British Pound (GBP) sat around 0.5860 (1.7060) against the Australian Dollar (AUD) recovering off the early week level of 0.5930 (1.6870) The UK government’s plans to ease the country’s energy crisis may come under massive constraints. Newly appointed Prime Minister Truss plans to cap the energy bill rises to help households. This cost is predicted to be an estimated GBP 170B, funding this will require finesse. The RBA delivered its fifth consecutive rate hike raising 50 points to 2.35%- Lowe saying he had no preconceived idea of exactly where the rate may end up peaking at. Next week’s UK CPI y/y will be one to watch with predictions of well over 10% printing. Fundamentally the GBP still looks heavy
The current interbank midrate is: AUDGBP 0.5871 GBPAUD 1.7032
The interbank range this week has been: AUDGBP 0.5837- 0.5927 GBPAUD 1.6870- 1.7132