The Pound Sterling to Australian Dollar (GBP/AUD) exchange rate edged higher by around 0.16% on Monday afternoon.
In response to a significant declination as the result profit-buying, the Pound strengthened on Monday amid fears the downtrend was unjustified. Sterling continued to edge higher versus many of its major peers despite cooling house prices.
The Australian Dollar, meanwhile, softened versus many of its major rivals as the US Dollar strengthened. Aiding the ‘Aussie’ (AUD) downtrend was less-than-ideal domestic data and heightened speculation that the Reserve Bank of Australia (RBA) will cut the cash rate to combat overvaluation.
The Pound Sterling to US Dollar (GBP/USD) exchange rate is currently trending in the region of 1.5670.
Pound Sterling (GBP) Exchange Rate Forecast to Advance versus the Euro despite Cooling House Prices
Over the weekend the Pound softened considerably versus many of its major peers. The depreciation was the result of traders locking profit after the recent rally opened up some attractive selling positions. Monday has seen the Pound recover, however, amid fears that the declination was unjustified.
The Pound continued to strengthen on Monday despite relatively disappointing economic data. This is likely to be the result of traders speculating that Tuesday’s inflation data will print positively. On the year, Rightmove House Prices advanced by 2.5% in May. On the month, house prices declined by -0.1%. Miles Shipside, Rightmove director and housing market analyst, said: ‘This is an election-driven price stall which gives some buyers only short-term relief from the back-drop of a long-term housing shortage, and many estate agents are now reporting a resurgence in interest following the surprise election result. Election uncertainty and particularly the threats of financial penalties to landlords and those with properties valued at over £2m put a brake on the market, and their removal gives a reason for a rebound in activity and prices.’
The Pound Sterling to Australian Dollar (GBP/AUD) exchange rate has fallen to a low of 1.9532 today.
Australian Dollar (AUD) Exchange Rate Forecast to Soften versus the US Dollar as New Vehicle Sales Slump
With the US Dollar strengthening ahead of this week’s significant data publications, the Australian Dollar softened amid dampened demand for high-yielding assets. Cooling trader risk-appetite amid geopolitical tension in Europe also added downward pressure on the ‘Aussie’.
In addition to US Dollar strength, disappointing economic data weighed on demand for the South Pacific asset. New Motor Vehicle Sales gained by 2.8% in April on the year, with the monthly figure declining by -1.5%. Additional losses can be connected to speculation that the RBA has not ended its easing cycle.
Pound Sterling to Australian Dollar (GBP/AUD) Exchange Rate Forecast to Hold Gains despite Cooling US Dollar
Although the US Dollar softened fractionally in response to yet more disappointing domestic data, the Pound Sterling to Australian Dollar (GBP/AUD) exchange rate is likely to hold gains for the remainder of Monday’s European session.
Tuesday is likely to see significant GBP/AUD volatility with several data publications pertaining to both the UK and Australia due for release.
The Pound Sterling to Australian Dollar (GBP/AUD) exchange rate reached a high of 1.9653 today.
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