Sterling has had a reasonably positive start to the week as predicted in my previous post gaining ground against a variety of major currencies, however losing against the Canadian Dollar.
The losses against the CAD were surprising, as during the week they did raise interest rates over there by 0.25% (however this was widely expected therefore didn’t lead to much strength) but at the same time they also revised their expected GDP (economic growth forecast) down for the rest of the year.
In Australia, the wheels are now fully in motion for an election over there expected on the 21st August – we are all aware just how important the election was for the U.K and indeed the Pound so I would imagine we should see the same volatility for the Australian Dollar over the next 6 weeks.
Should they head for a hung Parliament then we could see the AUD weaken leading up to the election or should things lead to a majority victory then the AUD may gain much more strength as political certainty is one of the main drivers for the strength of a currency.
Once again there are important economic releases for the U.K every morning this week so if you have an upcoming transaction to do then it is imperative you let one of the currency experts here at Pound Sterling Forecast know so they can keep you up to date with what is happening in the markets – Just fill in the form on the right hand side of this page and someone will contact you shortly.