Pound Sterling to Australian Dollar (GBP/AUD) Exchange Rate Forecast to Trend within Narrow Range
The Pound Sterling to Australian Dollar (GBP/AUD) exchange rate is trending within a tight range on Friday.
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In the wake of the decision by the Swiss National Bank to scrap its long-term Euro cap, the pound strengthened against many of its major peers. This can be attributed to traders looking for a new place to park their cash, and the comparatively high British interest rate makes it an appealing investment.
The Australian Dollar, meanwhile, avoided serious declination amid dampened risk sentiment thanks to demand for gold. However, the gold advance was such that the speed was seen as unjustified, causing gold prices to cool. Fluctuations in copper have also caused ‘Aussie’ (AUD) volatility on Friday.
The Pound Sterling to Australian Dollar (GBP/AUD) exchange rate is currently trending in the region of 1.8476.
Pound Sterling (GBP) Exchange Rate Advances on SNB
As described above, the well documented SNB move to remove its Euro cap allowed the Pound to advance against many of its most traded rivals. With an absence of data to curb the trend, the Pound has continued strengthening against many of its competitors.
Perhaps aiding the positive sentiment towards the Pound was Friday’s US inflation data which showed consumer prices declined. This means that the UK’s inflationary issues are not unique, and that external factors beyond control is the main driving force behind the drop in inflation.
The Pound Sterling to Australian Dollar (GBP/AUD) exchange rate has fallen to a low today of 1.8380.
Australian Dollar (AUD) Exchange Rate Fluctuates on Commodities
Given that both gold and copper prices have fluctuated on Friday, it is unsurprising that the commodity-correlated Australian Dollar has followed suit. However, demand for the safe-haven qualities of gold has allowed the Australian Dollar to hold gains against many of its rivals.
Additionally, the hangover from Australia’s impressive labour data has supported the ‘Aussie’ despite significantly dampened market sentiment after the SNB and declining oil prices.
Pound Sterling to Australian Dollar (GBP/AUD) Exchange Rate Forecast to Hold Steady
With a complete absence of domestic data to spark changes, the Pound Sterling to Australian Dollar (GBP/AUD) exchange rate is likely to hold steady for the remainder of Friday.
The Pound Sterling to Australian Dollar (GBP/AUD) exchange rate advanced to a high today of 1.8547.