UK Pound to Australian Dollar Exchange Rate Today - GBP to AUD Firms on Iraq / Ukraine Concerns

August 11, 2014 - Written by James Fuller

STORY LINK UK Pound to Australian Dollar Exchange Rate Today - GBP to AUD Firms on Iraq / Ukraine Concerns

The British Pound to Australian Dollar exchange rate firmed on Monday as worries over the deteriorating situation in Iraq and as Ukrainian forces prepared to launch a final assault against the Pro-Russian rebel stronghold of Donestk.
With nothing in the way of market moving data for both currencies, any movement will be a result of events in the world’s trouble spots. The GBP AUD exchange rate stands at 1.81138.

Further Pound gains are unlikely throughout today’s session as UK firms reported that a ban on European food goods by Russia is negatively affecting upon business. Fish exporters and larger companies such as Kingfisher warned that if the tit-for-tat ban continues then the negative impacts would increase.

"We're clearly concerned that if it went further it would impact us and we're just having to wait and see and also try and switch where we can to more domestic sources [for products]. But the market longer-term for us there is still a solid one," said Kingfisher chief executive Sir Ian Cheshire.

Concerns over Iraq intensified on Monday, as a political crisis appears to be brewing. Embattled Prime Minister Nouri al-Maliki has refused to give up his bid to stand for a thirds term and a coalition of Shiite parties is expected to nominate a new Prime Minister.

Pro-Maliki security forces took up positions in and around Baghdad raising concerns of possible violence in the capital city. On Friday, the United States of America launched airstrikes against Islamic State forces besieging civilians in the North West of the country.

The US air strikes have been the first direct American involvement in a military operation in Iraq since their withdrawal from the country in late 2011.
In Gaza, a three-day ceasefire has held between Israeli and Palestinian factions from Hamas. Tensions eased slightly on hopes that both sides will now send negotiators to Egypt to discuss a longer-term ceasefire.
In the fighting up to 2,000 people have been killed, including 1,900 Palestinian civilians and 67 Israelis.

In the worlds, other major trouble spot concerns eased slightly over possible Russian intervention in eastern Ukraine. Russia’s defence Minister said that Russian forces massed on the border had ended their military exercises.

Meanwhile Ukrainian government forces have continued to attack the main pro-Russian rebel stronghold of Donestk. According to reports, government forces used artillery against the city.
“In the absence of macro-economic data and directionality, we’re being driven by the geopolitical news flow,” NAB senior currency strategist Emma Lawson said. “There will be a lot of focus on that and it may allow the Aussie to stabilise and possibly regain some of the losses seen over the prior week.”

Tuesday will see the release of the latest Australian house price and business confidence data. Positive data could offer support but market attention will mostly be focused on events in the USA. Stronger data out of the world’s largest economy will likely put further pressure upon the ‘Aussie’ and could send the AUD/USD currency pair below the 92 cents level.

Wednesday is likely to see the AUD/USD exchange falter if US retail sales data comes in better than forecast. The Pound too could regain ground if the latest UK unemployment data adds to signs that the UK economy is continuing to strengthen.

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