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?
Sterling marched higher after the BoE positively revised its UK growth forecasts. The central bank had previously estimated that the UK economy would contract by 14% in 2020.
However, as a result of the action taken by the government, the BoE has adjusted this projection to a 9.5% contraction.
The central bank left policy unchanged, as expected, and indicated that it has no plans to alter its approach for the moment.
When asked about negative interest rates BoE Governor Andrew Bailey commented that they ‘are part of our toolbox… but at the moment we don’t plan to use them.’
The GBP/EUR exchange rate recovered previous losses after the rate decision, while GBP/USD rallied all the way to $1.31.
However, the pound gave up its BoE-inspired gains after Chancellor Rishi Sunak indicated that there would be no extension to the furlough scheme, giving rise to concerns that UK unemployment could spike in October.
This week the biggest movers of GBP exchange rates are likely to be the UK’s GDP estimate and employment report.
Economists have forecast that the economy contracted by a whopping 20% in the second quarter. Confirmation of this could prove GBP-negative.
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)