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GBP Today: Sterling Gains Send Pound Euro Exchange Rate up; Pound to Australian Dollar Forecast to Fall

April 15, 2014 - Written by John Cameron

Figures released by the Office of National Statistics earlier today revealed that the rate of British price rises slumped to its lowest level since the Autumn of 2009 last month, but the Pound still managed to register a small gain on the day against the euro sending the Pound euro exchange rate up to as high as 1.2120 GBP/EUR earlier on.

The UK inflation numbers, which pointed to annualised level of domestic price rises of 1.6%, came in exactly as per the consensus opinion amongst analysts. In a clear case of placing the cart before the horse, the market had already factored in the dip in British inflation, so the Pound did not suffer in response. Indeed, the fact that Sterling was able to claw back about a quarter of a cent against the single currency during the first half of the London session is suggestive that a meaningful minority of investors had been anticipating a lower print. Sterling has also edged higher against the US Dollar so far today, sending the Pound Dollar exchange rate up to an intraday high of 1.6731 GBP/USD.

Elsewhere, the Pound has also registered limited gains against the Australian Dollar during today’s European equities session. The forward move for GBP/AUD would surely have been of a greater magnitude were it not for the relatively neutral tone of the latest set of Reserve Bank of Australia minutes, published overnight. Some investors had been expecting the memos of the RBA’s April get-together to flag up concerns from Australia’s policymakers regarding the broad strengthening of the their currency during the past three months. The fact that the collected RBA policymembers resisted this temptation suggests that the Aussie may be allowed to continue edging higher against the Pound, US Dollar and euro for some time to come. With interest rate hikes expected in Australia later in the year, the future is forecast to be bright for the Aussie.

Relevant Pound Sterling Exchange Rates (As of: 12:30 GMT 15/04/2014)



The Pound Sterling to Australian Dollar exchange rate is trading up +0.23% at 1.78120 GBP/AUD.
The Pound Sterling to Canadian Dollar exchange rate is trading up +0.16% at 1.83757 GBP/CAD.
The Pound Sterling to Euro exchange rate is trading up +0.08% at 1.21166 GBP/EUR.
The Pound Sterling to New Zealand Dollar exchange rate is trading up +0.34% at 1.93268 GBP/NZD.
The Pound Sterling to US Dollar exchange rate is trading down -0.02% at 1.67235 GBP/USD.
The Pound Sterling to South African Rand exchange rate is trading down -0.14% at 17.56718 GBP/ZAR.

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