Strike Action Sends UK Confidence Plummeting, GBP AUD Exchange Rate Dips

December 19, 2016 - Written by Tim Boyer

STORY LINK Strike Action Sends UK Confidence Plummeting, GBP AUD Exchange Rate Dips

The Pound to Australian Dollar exchange rate continued to trend with a downside bias on Tuesday afternoon, edging lower due to the latest Brexit comments from UK Prime Minister Theresa May.

While the ‘Aussie’ remained weak on leftover risk-off movement from the Federal Reserve’s hawkishness, Sterling was the weaker currency on Tuesday after May refused to confirm that Parliament would be given a deal on the final Brexit deal.

(Previously updated 19/12/2016)

Pound Australian Dollar Exchange Rate Update: GBP Losses Follow Wave of Strike Action in Key UK Networks

The Pound Australian Dollar exchange rate has fallen today, amid a turbulent time for the UK’s transport and travel networks.

While the latest strike action at British Airways, the Post Office and Southern Rail is unlikely to cause any major dents in the UK’s economic health, the fact that they are occurring so close to Christmas has been of great concern to UK investors.

The inability for the Government to find a solution to the critical issues protested against has reflected poorly on officials, with the threat of missed parcels and passengers seemingly not enough to break the current stalemates.

GBP AUD Exchange Rate Prediction: Sterling Losses Expected on UK Data Outlook

The current week does not look like a good one for the Pound against the Australian Dollar, given that most of the incoming data this week has been forecast pessimistically.

Wednesday’s Government borrowing figures are expected to show a large deficit expansion in November, while Q3 business investment on Friday is also due to show a drop on the quarter and the year.

The last major UK news of the week is also due on Friday, covering the final GDP growth rate figures for Q3. While the quarterly result has a drop forecast, the Pound could be granted some minor respite due to an expected increase for the annual figure.

Australian Dollar Pound Exchange Rate Recap: AUD GBP Gains Come Amid Widespread Instability on Growth Forecast Downgrades

The Australian Dollar has been an unsettled option against most of its regular peers today, having only managed to really advance against the flagging Pound.

The latest damage to perceptions of the Australian economy have been twofold, with one factor being the Government downgrade of growth forecasts for the next four years.

Additionally, news of massively expanding iron ore mining in South America has delivered a further knock to AUD investors, as it points to the cost of the commodity being lower on average in the future.

AUD GBP Predictions: Optimistic RBA Minutes could Strengthen Australian Dollar Pound Exchange Rate

Looking ahead, the biggest Australian economic news of the week is set to be this Tuesday’s Reserve Bank of Australia (RBA) meeting minutes for December.

These minutes could firm the AUD GBP exchange rate, assuming that they are hawkish when looking ahead to 2017.

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TAGS: Australian Dollar Forecasts Currency Predictions Daily Cur Forecasts