March 10, 2021 - Written by James Fuller
The Pound continues to climb, and the British Pound to Australian Dollar (GBP/AUD) exchange rate is benefitting from weakness in the Australian Dollar today. Investors are selling the Australian Dollar after a solidly dovish tone from Reserve Bank of Australia (RBA) Governor Philip Lowe in a recent speech, while Sterling keeps benefitting from the market’s broad optimism that Britain will recover from the coronavirus pandemic.
Strength in both currencies has led to GBP/AUD volatility in recent weeks. Last week saw GBP/AUD tumble from the level of 1.8069 to briefly fall as low as 1.78 before rebounding and closing the week just below the level of 1.80.
March 9, 2021 - Written by David Woodsmith
Despite the Pound’s continued broad appeal, the British Pound to South African Rand (GBP/ZAR) exchange rate slipped back from its best levels in months today amid a rebound in demand for the South African Rand. Strength in the Rand may be limited, but if South African data continues to impress investors, then the pair is likely to struggle to return to multi month highs again.
GBP/ZAR has been trending with a generally upside bias in recent weeks, sustaining pretty solid gains due to the Pound’s broad strength. Last week saw GBP/ZAR climb from the level of 21.05 to 21.25, and the pair is again trending with an upside bias this week.
January 29, 2021 - Written by David Woodsmith
While safe haven demand has been rising on market uncertainty in recent sessions, this did not stop the British Pound to Japanese Yen (GBP/JPY) exchange rate from jumping to its best levels in almost a year. While the Yen is typically more correlated with market sentiment than domestic news, a slew of negative Japanese data combined with some US Dollar (USD) strength left the Yen unappealing.
After opening this week at the level of 142.00, GBP/JPY briefly dipped lower but has since been spending the week trending higher and higher.
Due to a combination of the Pound’s surprising resilience in recent weeks, and strength in the Yen’s rival the US Dollar, GBP/JPY touched on a new 11-month-best of 143.38. This was the best level for the pair since February 2020, and with February 2021 right around the corner it shows that GBP/JPY may have recovered the past year’s losses.