Australian Dollar to Pound Sterling (AUD/GBP) Exchange Rate Forecast to Trend Lower on UK Data

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Australian Dollar (AUD)

The Australian Dollar to Pound Sterling (AUD/GBP) exchange rate softened by around -0.30% towards the end of Friday’s European session.

With market sentiment dampened amid geopolitical tensions in Europe, the ‘Aussie’ (AUD) softened versus many of its major peers. The declination was halted, however, after the US Dollar weakened from mixed domestic data results.

The Pound Sterling, meanwhile, strengthened versus many of its most traded currency competitors thanks to positive labour market data results. The advance has been somewhat sluggish, however, with the forthcoming general election weighing on demand for the British asset amid political uncertainties.

The Australian Dollar to Pound Sterling (AUD/GBP) exchange rate was trending in the region of 0.5195.

Australian Dollar (AUD) Exchange Rate Edges Lower on Damp Market Sentiment

With mounting speculation that the Greek government will not be able to balance pleasing both its people and its creditors, market sentiment dampened considerably. The probability that Athens will fail to create acceptable reforms by the April 24th deadline is also weighing on trader risk-appetite. As a risk-correlated currency, the ‘Aussie’ softened as a result.

However, a soft US Dollar and rising gold prices halted the Australian Dollar declination somewhat. ‘Greece has moved back toward the front burner of the market place late this week,’ said Jim Wyckoff, an analyst at ‘Gold is seeing some safe-haven demand.’

The Australian Dollar to Pound Sterling (AUD/GBP) exchange rate dropped to a low of 0.5182.

Pound Sterling (GBP) Exchange Rate Gains on Jobs Data

After British economic data produced better-than-expected results, the Pound advanced versus many of its major peers. Jobless Claim Rate showed a positive declination to a 40 year low, unemployment fell in line with economists’ predictions and wages (ex bonus) advanced beyond expectations.

‘We are living through a jobs miracle — brought to you by a Conservative government that has backed business, reformed welfare and rewarded work,’ David Cameron said on a visit to a Fujitsu Ltd. plant in central England as the company announced the creation of 750 jobs. ‘So as long as I’m prime minister, I’m going to put job creation front and center of any government I lead.’

‘Adjusted household income growth will be strong this year, which bodes well for consumer spending,’ said James Knightley, an economist at ING Bank NV in London. ‘As such, we are still in the camp that predicts higher BOE interest rates before the end of the year.’

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

With market sentiment cooling, and with the British asset soaring after the labour data, the Australian Dollar to Pound Sterling (AUD/GBP) exchange rate is likely to hold losses for the remainder of Friday’s European session.

The Australian Dollar to Pound Sterling (AUD/GBP) exchange rate climbed to a high of 0.5220.

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