May 10, 2021 - Written by Frank Davies
Pound (GBP) Exchange Rates Rally Sharply Thanks to UK Economic Optimism
The Pound to Australian Dollar exchange rate rallied sharply at the start of the week thanks to a fresh wave of optimism over the UK outlook.
As the Scottish Nationalist Party (SNP) failed to secure an absolute majority in last week’s local elections the risk of any new independence referendum diminished.
Investors also took encouragement from the stronger-than-expected Halifax house price index data, which pointed towards the continued resilience of the UK housing market.
As prices picked up 1.4% on the month in April this offered further encouragement in the prospect of a stronger second quarter of economic activity.
April 30, 2021 - Written by Frank Davies
Pound (GBP) Exchange Rates Falter in Spite of UK Housing Price Index Increase
A solid uptick in the Nationwide house price index was not enough to keep the Pound to US Dollar (GBP/USD) exchange rate from shedding ground.
While prices saw growth of 2.1% on the month in April, reversing the previous month’s -0.3% contraction, this failed to shore up demand for the Pound.
Even with the UK housing market demonstrating renewed signs of strength at the start of the second quarter the potential for Pound exchange rate gains proved limited.
As investors have already priced significant odds of a second quarter growth recovery into the Pound this kept something of a lid on the GBP/USD exchange rate at this stage.