yesterday saw the release of data by RICS showing house sales are at the lowest since the 70's. This has significantly weakened Sterling. However, much higher than expected Consumer Price Index data has pushed Sterling back up again in early trading today.
In my opinion the BoE will still look to cut rates to 4.75% at their next meeting, and with it we could well see Sterling continue its slippery slide.
AUD
Australian data released yesterday does point to higher interest rates ahead, and along with it a stronger (more expensive) AUD.In fact Stephen Halmarick a strategist at Citigroup said
"The clear implication from the RBA's statement today is that the risks to inflation, and therefore official interest rates, remain to the upside in the near-term."
Higher interest rates usually strengthen a currency, so this coupled with a high chance of a rate cut here in the UK soon, means that the outlook for the GBP/AUD is very poor for the short to medium term, and could well continue its downward slide.Also, we had a host of very poor UK Data released in the last 12 hours, which has compounded the problem, and weakened Sterling significantly.This is a brief summary of todays report. Click here to read the full report on our main website
If you are buying a property abroad, and want the best exchange rates, just click on the links below to go straight to our main site, or Email Me
Have a great day and thanks for reading!
Daniel Wright
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