Our predictions were correct with the British Pound (GBP) pushing higher from Tuesday’s 0.5240 (1.9080) to reach 0.5140 (1.9460) in early Friday trading. The lowest level since April 2020. The BoE signalled they are close to reaching a top in this tightening cycle later this year but highlighting further persistent pressures remain with taming inflation, consumer spending and strong wages. Earlier the Bank of Australia surprised markets by holding their cash rate at 4.10% against expectation of a hike, maintaining their forward guidance of further tightening required. For now, the Aussie looks down for the count, the worst performing main board currency.
The current interbank midrate is: AUDGBP 0.5157 GBPAUD 1.9391
The interbank range this week has been: AUDGBP 0.5136- 0.5242 GBPAUD 1.9072- 1.9469