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.
April 7, 2021 - Written by Toni Johnson
Despite the Pound being sold from its best levels in profit-taking this week, the British Pound to Australian Dollar (GBP/AUD) exchange rate continues to trend relatively closely to its best levels in months. The Australian Dollar’s strength is limited due to mixed demand for risk and trade-correlated currencies, as global economic hopes are weighed by fears of a potential ‘third wave’ of coronavirus infections.
Last week was yet another volatile week for GBP/AUD. The pair opened the week at the level of 1.8070 and spent the week climbing, ultimately closing the week at the level of 1.8173.
March 17, 2021 - Written by David Woodsmith
Since opening this week, the British Pound to South African Rand (GBP/ZAR) exchange rate has been trending with a downside bias. The South African Rand is attempting to sustain its recent gains as markets await central bank news, while the Pound’s recent rally has run out of steam for now. The pair has the potential to climb in the coming days if central bank news surprises investors, but otherwise the South African Rand could remain appealing if markets head for more risk-on movement.
Last week saw a strong rebound in the South African Rand. GBP/ZAR opened last week at the level of 21.25 and briefly jumped to a high of 21.48 - the best level for the pair since October 2020.
March 4, 2021 - Written by John Cameron
The Pound to Australian Dollar (GBP/AUD) exchange rate lost its footing even as the UK construction PMI bettered forecasts.
Although forecasts had pointed towards an uptick in the PMI the index surprised investors by jumping from 49.2 to 53.3 on the month.
This suggests that the construction sector returned to a state of solid growth in February, in spite of the ongoing pressures stemming from the Covid-19 crisis.
However, the ultimate impact of the data was ultimately limited thanks to the fact that the construction sector only accounts for a small fraction of the UK gross domestic product.