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.