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.
DATA RELEASES TODAY:
GBP – BOE Governor Carney Speaks at 6.00pm
GBP – Average Earnings Index at 6.30pm
AUD EXCHANGE RATES:
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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