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, the pound is enjoying modest gains this morning, with GBP/EUR climbing to €1.1262 and GBP/USD accelerating to $1.2533. GBP/NZD has shot up to NZ$1.9979, while GBP/CAD and GBP/AUD hold steady at C$1.6965 and AU$1.8432 respectively.
Coming up today, the situation in the US will be in the spotlight, where more unrest could extend the US dollar’s losses.
What’s been happening?The US dollar nosedived at the start of this week’s session as a weekend of widespread protests and riots in US cities took their toll on the ‘greenback’.
Further limiting the appeal of the US dollar was the release of the ISM manufacturing PMI which reported the US factory sector contracted more than expected in May.
In the UK, the publication of the UK’s manufacturing PMI increased Sterling’s appeal as an easing rate of contraction bolstered hopes that the worst of the UK’s factory slowdown has now passed.
Meanwhile, trade in the euro was mixed yesterday. The single currency initially strengthened amidst growing expectations that the European Central Bank (ECB) will announce an expansion to its stimulus programme but faltered after the Eurozone’s own factory PMI printed below forecasts.
What’s coming up?Looking ahead, it’s likely we can expect the civil disobedience in the US to act as the main catalyst of movement in the US dollar today, with the US dollar likely to remain on the defensive so long as the unrest continues to intensify.
However, the 'greenback’s status as a safe-haven currency could still see USD exchange rates bounce back if we see rising tensions between the US and China unnerve some investors.
For GBP investors the focus is likely to turn back to Brexit as the UK and EU hold their latest round of negotiations. Any talk of a stalemate could weigh on Sterling sentiment in the coming days.
Finally, in the absence of any notable data releases the euro may find itself stuck trading in a narrow range as EUR investors brace for the ECB’s upcoming policy meeting.
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)