Sterling exchange rate overview
Sterling exchange rates are trading up this morning against a host of major currencies. The MPC voted 8-1 to keep the base rate of interest on hold at 0.5% This was not a surprise for the market but more importantly there was no increase in QE. This may be why the pound has strengthened as yesterday was a dire day for the pound on the bank of the inflation data that was released.
Aussie Dollar News
Aussie Dollar exchange rates strengthened over the course of yesterday on the back of the Irish Government selling bonds to around 1.5bn. Investors look for riskier currencies like the AUD and it was trading up against USD exchange rates.
This morning the pound is trading up against the Aussie Dollar by around 0.6% With the election down under looming this weekend we could see sterling-Aussie exchange rates be extremely volatile if there is a new government elected into power. If there is a hung parliament I would beleive that there could be some excellent buying opportunities in the short term.
if you would like information on how any of the above could have an effect on a currency exchange please feel free to contact us and we can explain the mechanics of trading.