Pound made gains against the aussie on Friday following weak US data

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.