The pound fell sharply yesterday after the UK inflation rate jumped from 7% to 9% – its highest level since 1982.
While AUD exchange rates made an effort to rally in mid-week trade, the uptick in the ‘Aussie’ proved fleeting as market risk appetite was undermined by the hawkish FOMC minutes and speculation the Federal Reserve could start hiking interest rates in March.
Also weighing on the Australian dollar were concerns over the rise in local Covid cases as soaring infections were seen as likely weakening consumer confidence.
On small bright spot for the ‘Aussie’ was the commodity market where rising prices for iron ore and coal helped to cap the currency’s losses.
Coming up this week, the publication of Australia’s latest trade figures could exert some pressure on AUD exchange rates as economists forecast the nation’s trade surplus will have narrowed again in November.
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)