“As our vaccination rates hit 70 and 80 per cent, we need to do that as well.” Pound Australian Dollar Forecast: UK Economic Outlook to Drive GBP Movement They’re learning to live with the virus in a COVID-safe way. “If you look around the world, people are starting to get about their normal lives. “Right now the commonwealth is providing more than a billion dollars of taxpayer money each and every week it’s supporting around one and a half million people, and that emergency payment needs to come to an end. Risk appetite appears to have increased today and cautious optimism has allowed the Australian Dollar to make modest gains against other major currencies.Īdditional support for AUD exchange rates has come from Australia’s vaccination rollout nearing the country’s target levels of 70-80% and the announcement that monetary support will be reduced.Īustralian Treasurer Josh Frydenberg commented: However, the AUD/GBP exchange rate has been able to continue making gains due to the UK’s fuel crisis weakening the Pound. The risk-sensitive Australian Dollar is making gains against a number of its peers today as market risk appetite has improved after yesterday’s sharp selloff.ĪUD exchange rates slipped as factory production stopped during power outages in China, the energy crisis in Europe mounts, and the Chinese property giant Evergrande crisis spooked investors and triggered a global risk averse mood, weighing on the risk-sensitive ‘Aussie’. Australian Dollar Strengthens as Market Sentiment Cautiously Improves Some economists fear increasing inflationary pressure, supply chain frailty, staff shortages, and difficult conditions for UK businesses will cause UK economic growth to slow, which in turn will likely weaken the Pound. We’re getting petrol into the forecourts and yesterday that was matched by the sales.”ĭespite the fuel crisis appearing that it will ease through this week, concerns over the UK economy and stagflation persist. “We’ve seen large queues but I think the situation is stabilising. “We’ve decided to do that and I think in the next couple of days, people will see some soldiers driving the tanker fleet. “It takes a couple of days, sometimes a few days to get troops on the ground. Following its decision to relax competition laws and issue emergency visas for overseas workers to fill a labour shortage, Business Secretary Kwasi Kwarteng today said the army would drive tankers to deliver fuel.
The UK government has taken steps to resolve the crisis this week. GBP exchange rates are suffering a second day of losses today as fuel supplies in the UK begin to stabilise, although supply issues appear to remain. Pound Slides as UK Government Looks to Stabilise Fuel Crisis The Pound Australian Dollar (GBP/AUD) exchange rate is continuing to struggle today as UK petrol shortages continue fuelling UK economic growth concerns.Īlthough reports suggest fuel supplies appear to be stabilising, the GBP/AUD exchange rate is slipping, down approximately 0.2% so far today at AU$1.8642. Buying the dips continues to be the best way that traders are approaching this market.Pound Australian Dollar (GBP/AUD) Weakens amid UK Economic Worries In fact, I believe that we are kicking off a bit of a renaissance for the US dollar again, as there are rising yields in America for the first time in ages of any significance. Nonetheless, regardless of what you do, you cannot be a seller of this pair anytime soon. Either way, I think it is going to be very noisy and risky to be a buyer at these high levels.
On a breakdown below the bottom of the candlestick for the session on Wednesday, the market then probably goes looking towards the ¥110.50 level, followed by the ¥110 level after that. Nonetheless, if we can break above the ¥112 level, you would have to believe that we are going to the ¥112.50 level. At this juncture, I have been using this pair more or less as a sign of strength or weakness in the Japanese yen. Quite frankly, if you want to buy the US dollar there are multiple other currencies that it would be easier to do against, as the British pound has just broken through major support, while the Australian dollar is ready to go lower as well. With this being the case, the market looks as if it is trying to break out but you cannot be someone willing to chase at this point. The US dollar has initially pulled back just a bit during the trading session on Wednesday only to turn around and rally yet again.
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