FX News

AUD/GBP Transfer:

This more aggressive Bank of England (BoE) interest rate release sent the Australian Dollar (AUD) back to 0.5290 (1.8900) this morning extending recent GBP moves to a two-week low. The central bank hiked 50 points to 5.0% as they move to try and bring down soaring inflation. Earlier UK inflation came in above expectation at 8.7% year on year after 8.4% was forecast, an unchanged shock result. This is a real problem for the Bank of England, the result beating out lower expectations the 4th month in a row. Further interest rate rises by the central bank in August/September are now likely. The carry trade is likely to be more evident and GBP supportive. Next week’s docket is thin with just Australian CPI y/y releasing, anything north of 6.8% may boost the AUD.

The current interbank midrate is: AUDGBP 0.5307 GBPAUD 1.8843
The interbank range this week has been: AUDGBP 0.5291- 0.5380 GBPAUD 1.8587- 1.8897

Previous ArticleNext Article