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January 27, 2021 - Written by John Cameron
GBP/AUD Exchange Rate Heads Higher as Risk Sentiment Sours
The Pound to Australian Dollar exchange rate rose by 0.6% today, with the pairing currently fluctuating around AU$1.78.
The Australian Dollar is struggling ahead of the US Federal Reserve’s interest rate decision.
As a result, demand for the risk-sensitive ‘Aussie’ has fallen, with global markets becoming concerned that the Fed could reveal a dovish outlook for the US economy.
Vincent Reinhart, chief economist at Mellon, said:
‘[Fed Governor Jerome] Powell is very good at accentuating the negative i.e. ‘We’re not even thinking about thinking about raising interest rates.’ ....

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