The pound advanced a further cent against the aussie on Friday, building on strong gains, as investors remained cautious following weak US employment figures.
- The US economy suffered 263,000 job cuts in September, which was far more than had been expected according to official data, sapping demand for ‘riskier’ assets.
- The pound advanced to over 1.84 as investors sold off the risky currency amid concerns that the US recovery may not be as robust as initially thought.
- However, the pound did cap its gains, as the US data dragged down European equities, with the FTSE falling below 5000 points, which dampened confidence in the UK currency.
- This morning, the Australian dollar as advanced strongly, up nearly a percent, as speculation mounts that the country’s central bank could raise rates later this week.
- Investors had been pricing in a possible rate move in early November, but the probability of a move toward 3.25 is now possible as early as tomorrow’s meeting, following comments from two Australian media columnists.