August 10, 2018 - Written by Tim Boyer
STORY LINK Strife in Turkey Sends Pound Australian Dollar (GBP/AUD) Exchange Rate Higher
Pound Australian Dollar (GBP/AUD) Exchange Rate Lifted by Souring Risk-Appetite
The Pound Australian Dollar (GBP/AUD) exchange rate has risen today as the tumbling Turkish Lira (TRY) puts higher risk and commodity-correlated currencies on the defensive.
The Australian Dollar has also weakened today amid continuing trade strife, with the US-China tensions souring appetite for the ‘Aussie’.
The Pound advanced slightly ahead of UKGDP readings, which placed the quarterly figure at 0.4%, but Sterling is still struggling against most other major currencies.
Pound (GBP) Exchange Rates Flail despite GDP Boost
Pound Sterling (GBP) exchange rates are largely on the decline again, with the currency only firming against the Australian Dollar (AUD) and the Euro (EUR) – currencies which economists speculate both owe their poor form to economic pressure in Turkey.
A second-quarter GDP growth rate of 0.4% has not altered GBP’s fortune, with geopolitical upheaval and brooding Brexit tensions still directing most of the Pound’s movement.
Australian Dollar Tumbles amid Economic Upset in Turkey
The Australian Dollar (AUD) has seen a large sell-off today as investors abandon the risk-related ‘Aussie’ for safer currencies in light of the freefalling Turkish Lira (TRY).
The state of Turkey’s economy has caused a universal loss of risk-appetite, which has seen GBP strengthen against AUD by over a cent.
The source of the upset is Turkish President Tayyip Erdogan’s ostensible aversion to orthodox economic practice, which (as of writing) has caused the GBP/TRY exchange rate to strengthen by over 16% in today’s session.
Analysts speculate that the situation in Turkey may worsen before it improves, which could see the ‘Aussie’ sustain further losses in the near future.
Pound Australian Dollar (GBP/AUD) Exchange Rate Forecast: Geopolitical Developments at the Fore amid Lull in New Data
With no UK or Australian news to contend with at the start of next week the Pound (GBP) and Australian Dollar (AUD) due at the commencement of next week’s session, which may see the exchange rate remain relatively stable barring drastic political developments.
The first set of data that may aid the Pound comes on Tuesday in the form of the UK’s unemployment rate for June, which is forecast to remain steady. A decline in the figure would be a welcome sight for GBP investors, however.
Australia’s first data of the week comes early Tuesday morning, NAB’s business confidence index, and a positive sentiment reading could lend AUD support.
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