Home Daily Commentaries GBP and AUD gain strength

GBP and AUD gain strength

Daily Currency Update

Minutes released this morning by the Reserve Bank of Australia (RBA) show the decision by the central bank to raise rates by 25bp was finely balanced between hiking and leaving the cash rate unchanged.

The Bank of England interest rate expectations and UK jobs data showed that UK employment unexpectedly fell, from 3.9% to 3.8%, with an anticipated 4.0% reading.

Key Movers

The information appears to be supportive of the pound as it reached its highest levels this year against the Euro and US Dollar.  The pound to Australian Dollar is slightly less appreciative and opened the month of June at 1.9062 and has since retraced to lower levels of 1.852 seen last week.

This proposes the unexpected rate hike from the Reserve Bank of Australia the likelihood for further tightening and the contribution of Iron ore prices have helped gather significant strength for the Aussie Dollar over the past few weeks.

Expected Ranges

  • GBP/USD: 1.2834 - 1.2804 ▼
  • GBP/EUR: 1.1692 - 1.1727 ▼
  • GBP/AUD: 1.8650 - 1.8820 ▲
  • EUR/USD: 1.0910 - 10931 ▲