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Pound’s Recovery Short Lived as Australian Confidence Rises

Yesterday’s high: AU$1.7166

Yesterday’s low: AU$1.7075

GBP/AUD Volatile as Pressures Mount Against Theresa May

The Pound slumped against the Australian Dollar on Monday in the wake of reports that rebel Conservative MPs may seek to hold a leadership contest after 40 Tories signed a letter of no confidence in Theresa May.

The news did not sit well with investors, especially as the EU’s chief negotiator Michel Barnier said over the weekend that he is planning for the potential collapse of Brexit negotiations.

While the pairing began to recover overnight it proved to be a bit of dead-cat bounce, with the ‘Aussie’ quickly advancing again earlier this morning following a surprise uptick in Australia’s latest Business Confidence index.

AUD Outlook: UK Inflation to Rise?

Looking to the day ahead, the UK will release its latest CPI figures later this morning, with economists forecasting it will show another rise in inflation last month.

However it may not translate into any gains for the GBP AUD exchange rate so soon after the Bank of England (BoE) voted to raise interest rates, especially as it signalled that the next hike is some way off.

Meanwhile, the Australian Dollar may soften later tonight with the publication of Australia’s latest consumer confidence figures as analysts forecast that household sentiment will have soured in November.

Key Events

14th November

09:30 UK Inflation Rate Oct

15th November

00:30 AU Consumer Confidence Nov

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To keep up to date with the Australian Dollar, visit the AUD blog in our Currency News section.

James Baxter
Senior Currency Broker
T: 01442 892 062

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