Year-round sunshine, stunning beaches, laid-back lifestyle. It’s easy to see why more than 1.2 million UK citizens call Australia home. With a shared language and culture, despite being almost 9000 miles way, makes the adjustment to Australia that much easier. But how easy is it to move to Australia?
Meanwhile, trade in the pound is mixed this morning, with GBP/EUR rangebound at €1.1125 and GBP/USD climbing to $1.2649. GBP/CAD is buoyed at C$1.7057, while GBP/AUD and GBP/NZD have slipped to AU$1.8088 and NZ$1.9446 respectively.
Looking ahead, the release of the highly influential US payroll report will be in the spotlight today. Will the US dollar tumble as unemployment nears 20%?
What’s been happening?The euro was the star of the show yesterday, rocketing over 1% against most of its peers as the ECB announced an expansion to its PEPP scheme.
ECB President Christine Lagarde announced that the ECB would be topping up its bond purchases by €600bn as part of the bank’s efforts to support the Eurozone economy through an ‘unprecedented contraction’.
This beat forecasts for a €500bn expansion and was cheered by EUR investors who hope it will help put the Eurozone economy on the road to a speedy recovery.
Meanwhile, the pound struggled to find direction on Thursday as Sterling sentiment was undermined by ongoing Brexit fears, with an improvement in the UK’s construction PMI failing to offset these concerns.
The US dollar faced even more pressure yesterday as its initial gains on the back of rising US-China tensions were reversed after a larger-than-expected rise in US initial jobless claims in the last week of May.
What’s coming up?Turning to today’s session, the focus is on the latest US payroll release.
Economists forecast that another substantial round of job losses will have catapulted the unemployment rate close to 20% in May, likely stoking concerns about the pace of the US economic recovery.
In the UK, the focus is likely to remain on Brexit as the latest round of trade talks come to a close. The pound is expected to face additional losses in the likely event that no breakthrough is found.
Finally, the euro is could also struggle today after Germany reported earlier this morning that it suffered its worst slump in factory orders on record in April.
Joining the corporate trading desk in 2007, Phil now over sees all of Currencies Direct’s corporate dealing activity. Having gained experience working with hundreds of businesses to optimise international payments processes and execute comprehensive risk management strategies, Phil currently works with a portfolio of corporate clients whilst managing Currencies Direct’s overall market exposure
Phil has FCA approval and has completed the Certificate in International Treasury Management (CertiTM)