Australian Dollar to Pound Sterling (AUD/GBP) Exchange Rate Forecast: RBA Holds Rates, BoE Warns of Greek Fallout

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Five Pound Sterling (GBP)

The Australian Dollar to Pound Sterling (AUD/GBP) exchange rate jumped in Tuesday’s European session as the ‘Aussie’ ran rings around a host of other major currency peers following a Reserve Bank of Australia (RBA) interest rate announcement.

The Australian Dollar jumped when the RBA defied investors’ forecasts for another cut to the official cash rate, instead opting to keep the benchmark stable at 2.25%.

However, concerns have been raised over spikes in the Australian Dollar exchange rate just moments prior to RBA announcements. For the third consecutive month, the ‘Aussie’ has swung in a favourable way (for the investor) just ten seconds ahead of the central bank interest rate statement, lending experts to suggest that informed trading could be taking place.

The occurrences carry echoes of the market fluctuations seen in 2013/14 after the Australian Bureau of Statistics caught two employees stealing data to trade on the results. Furthermore, last year saw eyebrows raised over employment data that appeared to be falsified.

Meanwhile, the Pound experienced movement after the Bank of England (BoE) suggested that the fallout of prolonged Greek negotiations or a Grexit could wreak havoc with UK banks.

The central bank therefore urged institutions to begin forming plans for a loss of the nation from the currency bloc.

The BoE policymakers stated: ‘The realisation of any of the global risks that the Committee had identified could trigger abrupt shifts in global risk appetite. This might, in turn lead to a sudden reprisal of underlying vulnerabilities in highly indebted economies, or sharp adjustments in financial markets.’

Australian Dollar to Pound Sterling (AUD/GBP) Exchange Rate Forecast

The Australian Dollar to Pound Sterling (AUD/GBP) exchange rate could be in for fluctuations on Wednesday with the release of the ANZ Roy Morgan Weekly Consumer Confidence stat, which will later be followed by UK New Car Registrations.

Thursday’s session is likely to see some major movement with the AiG Performance of Construction Index and Bank of England interest rate decision both out.

Although the BoE isn’t expected to make any interest rate adjustments at the moment, the Pound could still experience movement around the announcement. Furthermore, the Pound may also be sensitive to any central bank announcements on the topic of rate hikes.

The Pound Sterling to Australian Dollar (GBP/AUD) exchange rate is trading at 1.9453. The Australian Dollar to Pound Sterling (AUD/GBP) exchange rate is trending in the region of 0.5142.

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