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?
For the second consecutive month, the Canadian dollar suffered from slow Consumer Price Index (CPI) results, but nevertheless it is hoped that this may push the CAD/USD to fresh weekly highs as it puts pressure on the Bank of Canada (BoC) to embark on its easing cycle.
Sterling took a hit
Yesterday (July 21st), Sterling took a hit, falling back from best conversion levels against the euro and US dollar, following poor UK Retail Sales economic forecasts. On top of this, investors wait anxiously on the president of the ECB, Mario Draghi’s press conference. Mr Draghi stated that Europe’s financial markets have weathered the uncertainty caused by Brexit.
Although GBP losses were widespread, the GBP/EUR exchange rate advanced in response to better-than-forecast labour market data on Thursday. Such a rise in the pound comes despite the fact that the data pertains to a pre-Brexit Britain.
A lower demand for euros
This week, demand for the euro calmed, due to a strong US dollar and worries over low yielding bonds. Traders await the ECB’s interest rate decision that will be revealed later this morning, even though the majority of analysts do not expect any changes to policy outlook at this time.
However, Mr Draghi’s decisions should not be taken lightly given the potential implications and problems at hand. It is predicted that the initial market focus could be on the ECB’s response to Brexit as previously, the president has claimed that the Eurozone could take a hit to growth following the referendum.
US Dollar rates pushed higher
Throughout the week, good domestic data meant that the US dollar currency rates were pushed higher. Yet despite this, overall improved market sentiment has somewhat limited gains.
It is believed that USD/EUR will stay steady ahead of the ECB with risk of guidance expecting to ease later this year.
The single currency advanced against many of its major peers following positive labour market data that was better than expected, but a reduced demand for safe-haven assets weighed on the USD exchange rate gains.
Australian dollar affected by a strong US dollar
Australian dollar to US dollar exchange rates have this week been affected by the strength in the USD and the predictions of a rate cut by the Reserve Bank of Australia (RBA), causing the pair to decline by over 2.7% from last Friday’s levels.
Such a decrease in the single currency has been intensified since the release of the RBA’s board meeting earlier this month, which left rates at 1.75%. In response to this, predictions for the rate cut in the next meeting in early August increased dramatically, rising by 10%.