Anthony from Moneycorp Posted March 4, 2019 Share Posted March 4, 2019 Monday’s session saw the Pound Sterling Australian Dollar (GBPAUD) exchange rate hold firmly in the vicinity of last week’s AU$1.87237 multi-month high with the cross last seen at AU$1.86924, up 0.27% from the session open. Last week saw the GBP climb against all majors, boosted by Brexit related optimism with this continuing to be a key driver for the GBP into Monday’s session following news-flow over the weekend suggesting the EU could provide assurances on the finite nature of the Irish backstop as well as expectations that should MPs reject the PMs deal on March 12th they would likely back an Article 50 extension to avoid a no-deal outcome. For the Aussie Dollar, Daiwa Securities senior strategist, Yukio Ishizuki, feels the antipodean currency could be undervalued. Following Aussie depreciation in the wake of weak business inventory figures, he wrote “The data was seen as pointing to a weak reading in Australian GDP data due on Wednesday, prompted speculators to create new short positions.” He added “Interest rate futures are now pricing in a rate cut this year but the economy could turn out to be stronger than expected given recent strength in commodity prices. I’d bet the Aussie could easily rise.” An expected shift to dovish/neutral in central bank meetings this week could see a recovery of risk-appetite which could also support the Aussie. Quote Link to comment Share on other sites More sharing options...
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