Market Update – 12th April 2017 – UK Inflation Stays On Track Dragging AUD/GBP Lower

UK inflation overnight held at 3 year highs around 2.3% supporting the GBP and seeing AUD/GBP lower again for nearly a 12th straight day. The U.K economy has continued to rebound in the wake of so much bad news following Brexit and ofcourse the triggering of Article 50 last month. Whether this is just the start of a sustained GBP rally only time will tell, but certainly the signs are promising. Bank of England Governor Carney will speak at 6.00pm this evening with likely the majority of his speech to be dedicated to how the Bank of England can assist during it’s transition away from the European Union.

Iron ore and other base commodities fell again over night which dragged on the Aussie, while stocks were mostly lower. The best performer was the U.K FTSE following that strong inflation reading.

Ahead tonight is further U.K data released around 6pm and 6.30pm respectively.


GBP – BOE Governor Carney Speaks at 6.00pm

GBP – Average Earnings Index at 6.30pm


AUD/USD – 0.7447

AUD/GBP – 0.5951

AUD/EUR – 0.7018

AUD/NZD – 1.0726

AUD/JPY – 81.798

***Above rates are indicative wholesale rates and intended as a guide only***

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Patrick Downes

Senior Corporate FX Dealer

Compass Markets

Phone Patrick – 0431 278 632 




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