The Australian dollar faltered at the beginning of the month after December’s Commonwealth Bank manufacturing PMI fell deeper into contraction territory from 49.4 to 49.2.
Signs of a resilient UK economy helped GBP exchange rates extend their recent rally by fuelling bets for positive growth in the third quarter.
Political developments also lifted demand for the pound, with opposition parties voting down Boris Johnson’s call for a snap general election.
As MPs successfully passed a backbench bill, which could potentially force the Prime Minister to seek an extension to the Brexit deadline, no-deal fears temporarily eased.
However, with the prorogation of parliament a sense of political anxiety could still see the pound fall out of favour in the coming week.
If the government seeks to circumvent the bill and push through a no-deal Brexit, investors are likely to abandon the pound again.
On the other hand, a solid reading from the latest UK average weekly earnings figures may encourage GBP exchange rates to maintain a positive bias.
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)