The Australian Dollar to Pound Sterling (AUD/GBP) exchange rate softened by around -0.23% on Friday afternoon.
After British economic data erred towards the positive, the Pound gained versus many of its major peers. The advance has been somewhat laboured, however, with the forthcoming general election leading to cautious trade amid political uncertainties.
The Australian Dollar, meanwhile, fluctuated on Friday after data printed positively but declining commodities dampened market sentiment. With oil prices seemingly unable to find a bottom, and with the US growth figures falling beyond expectations, investor risk-aversion is dominating trade.
The Australian Dollar to Pound Sterling (AUD/GBP) exchange rate is currently trending in the region of 0.5149.
After US Gross Domestic Product softened beyond market anticipation, speculation that it would trigger a global slowdown saw demand for high-yielding assets dwindle. ‘The economy is also showing more signs of lopsided growth, being too reliant on the consumer,’ said Chris Williamson, chief economist at Markit.
Continued declination in oil prices is also weighing heavily on demand for the commodity-correlated South Pacific Asset. ‘The fundamentals remain weak, with seasonal refining maintenance resulting in stock builds on what is an already high base for stocks,’ said Amrita Sen, chief oil analyst at London-based Energy Aspects.
The Australian Dollar to Pound Sterling (AUD/GBP) exchange rate dropped to a low today of 0.5124.
Despite disappointing results from Net Consumer Credit and Net Lending Securities on Dwellings data, positive results from consumer confidence and mortgage approvals data allowed the Pound to strengthen versus the majority of its most traded currency rivals.
Of particular significance was the GfK Consumer Confidence Survey which eclipsed the median market forecast of a rise from -4 to -2, with the actual result reaching 1. ‘With less than 100 days before the election, this big jump in the Index will be very welcome news for the government,’ said Nick Moon, managing director of social research at GfK, before warning against reading too much into January’s strong reading. ‘If next month sees another rise, that will definitely signal good news for the government but, if not, it will suggest that the growth in GDP is not making people feel better off.’
With market sentiment struggling amid cooling US growth and falling oil prices, the Australian Dollar to Pound Sterling (AUD/GBP) exchange rate is likely to hold losses for the remainder for Friday.
The Australian Dollar to Pound Sterling (AUD/GBP) exchange rate climbed to a high today of 0.5170.
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