Pound Sterling to Australian Dollar (GBP/AUD) Exchange Rate Forecast to Dive on Hawkish RBA
GBP/AUD Conversion Rate Declines after BoE Chief Economist Andrew Haldane Made Dovish Comments
The Pound Sterling to Australian Dollar (GBP/AUD) exchange rate dived by around -1.0% on Tuesday afternoon.
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During today’s Treasury Select Committee meeting, at which Bank of England (BoE) Chief Economist Andrew Haldane answered questions alongside Governor Mark Carney, the Pound dived versus nearly all of its currency rivals. Haldane, known to be the BoE’s most dovish policymaker, asserted that there is an equal likelihood that the overnight cash rate will be cut as hiked. Whilst Carney did not support these views, a generally vague approach to policy outlook weighed on investor confidence.
Ranko Berich, head of market analysis at Monex Europe, fears that policymakers will not be able to shrug off the dovish Haldane comments this time around, stating: ‘It’s important to note that dissent in the MPC is not only acceptable, but desirable. The act that Haldane balances the risks to inflation differently to other MPC members is precisely why a committee votes on rates, as opposed to having one decision maker. If the entire MPC had the same view, there would be no point in the committee. Haldane’s views do have merit and if the data begins to support them more conclusively, the rest of the MPC is bound to take notice.’
The Pound Sterling to Australian Dollar (GBP/AUD) exchange rate is currently trending in the region of 2.0827.
AUD/GBP Exchange Rate Rallies after RBA Governor Shows Optimism on Economic Outlook
The Australian Dollar advanced versus the British asset in early trade today after copper and gold prices climbed following a slight rise in Chinese stock values. However, gains were fractional given that iron ore prices remain low and December Federal Reserve rate hike bets continue to rise. However, as the European session progressed the ‘Aussie’ (AUD) racked up significant gains following a speech from Reserve Bank of Australia (RBA) Governor Glenn Stevens. Stevens was optimistic with regards to economic outlook.
‘One can’t help but observe that, in common discussion about the economic outlook, we too often ignore the influence of demography,’ Stevens told a dinner of business economists. ‘The fervent desire for precision is not supported by any demonstrated accuracy of economic forecasts.’ Stevens added that ‘a number of data points over recent months suggest that prospects for firmer conditions in the non-mining economy are improving.’
The Pound Sterling to Australian Dollar (GBP/AUD) exchange rate dropped to a low of 2.0835 today.
Pound Sterling to Australian Dollar (GBP/AUD) Exchange Rate Forecast: ‘Aussie’ Predicted to Hold Gains ahead of October’s Australian Skilled Vacancies Data
With an absence of further domestic data for the remainder of today’s European session, the Pound Sterling to Australian Dollar (GBP/AUD) exchange rate is very likely to hold losses, especially given the current significant depreciation. Overnight, however, the GBP/AUD conversion rate could see movement in response to October’s Skilled Vacancies, third-quarter Construction Work Done and November’s Westpac MNI Consumer Sentiment.
During Wednesday’s European session the GBP/AUD exchange rate could see changes in response to UK BBA Loans for House Purchase data and a speech from the RBA’s Assistant Governor Guy Debelle.
The Pound Sterling to Australian Dollar (GBP/AUD) exchange rate climbed to a high of 2.1048 today.