Australian Dollar Soars To Strongest Levels in Three Decades

The Pound has edged up a little this morning as services data showed signs of growth, making back some of the losses seen so far this week. Worldwide events are still having a heavy influence on the currency markets and the Australian Dollar has soared to a twenty nine year high against the US Dollar. If you are transferring Australian Dollars into Sterling or another currency this could be a great time to fix the rate. If you need to make a transfer into Australian Dollars in the very near future, now is the time to discuss with one of our brokers how to protect yourself from any further falls and make sure they are keeping an eye on the rates for you. You can call or register an online enquiry.

Pound Sterling – UK Markets

The Pound has bounced up against the Euro so far today, gaining back a little ground to now find itself at a similar level to the start of this week. Against the Dollar, the Pound has also recovered some strength. This is due to GDP figures yesterday revealing that the economy did not shrink quite as much as initially expected in the final quarter of 2010, as well as debt problems in Europe causing the currency to weaken. Services data this morning also showed signs of growth. Service sector activity was revealed as rebounding in January, growing at its fastest monthly pace since 2002. This comes with a word of caution however, in that had December’s figure not been so poor due to the weather, growth would have been broadly flat. GDP was revealed as slipping by 0.5 percent in the final quarter of 2010 – this is not quite as much as the 0.6 percent that some had expected and so some of the drops in Sterling previously this week can be attributed to anticipation of a lower figure. There was more bad news however in the size of the UK trade deficit which had once again widened.

US Dollar – US Markets

The US Dollar has been gaining on the Euro so far today following falls yesterday afternoon but has lost out to the Pound. There has been some volatility this week as policy makers in the US have suggested that quantitative easing may be soon be wound down. If this sentiment continues and talks of interest rate rises also grow, the Dollar will have the potential to strengthen. Consumer confidence figures from the US also showed falls for February although it is expected that this afternoon’s jobs data will reveal that companies added more jobs in March.

Euro – European Markets

The Euro has finally lost a little of its momentum against the Pound this week, dropping so far today as ratings agency Standard and Poor’s have downgraded Greece and Portugal because of concerns over debt. Economic confidence from the EMU this morning was also poor, with the figure coming in slightly lower than official forecasts. The data this morning was mixed however as industrial confidence actually came in much higher than expected. The main issue that Europe has to contend with at present however is ongoing criticism of the way that back up funds and the issues facing individual nations are being handled with Greece and Portugal experiencing rating downgrades by Standard and Poor’s. The likelihood of an interest rate rise at the start of April is what is keeping the European currency currently strong.

Other Currencies – Highlights

The Australian Dollar is making headlines having risen to a twenty nine year high against the US Dollar. This is due to demand for Australia’s commodities from growing economies such as China and India remaining strong. The rise is also due to Australia’s high interest rates and low inflation. If you are exchanging Australian Dollars into another currency, this is a great time to book the rate.