The British pound is lower against the Australian dollar on Friday.
- Australia records highest virus count in 2-months
- Prime Minister Morrison: Outbreak in Victoria is localised
- UK’s Sunak: Cannot protect every job
- Pound-Australian dollar exchange rate -0.56& this week
GBP/AUD was down by 39 pips (-0.22%) to 1.7987 as of 4pm GMT.
The currency pair has been trending lower but only broke below 1.80 in the late European afternoon. Yesterday it fell -0.26%.
GBP: Pound falls with souring risk appetite
The pound added to earlier losses when declines on Wall Street accelerated. The Dow Jones index dropped over 500 points after the state of Texas rolled back its reopening, closing bars and restricting other retailers to 50% maximum capacity.
Quarter-end flows in the United States before the shortened Independence Day holiday week may have played some role in extra market volatility on Friday.
UK Chancellor Rishi Sunak said today that Furlough scheme will last for up to eight months, but cautioned “We cannot protect every job despite unprecedented action… The best way to protect jobs is to have businesses reopen.”
The downturn in global risk appetite saw the British pound drop, while the US dollar gained in a flight to safety. Rising coronavirus cases from Western Germany to Australia to Texas saw financial markets begin to price in a second wave, selling perceived riskier currencies in the process.
AUD: Victoria sees 30 new cases on Friday
Rising cases in Australia’s second most populous state of Victoria this week has culminated in 30 new cases on Friday, with 33 cases nationally being the biggest increase in 2 months.
The Aussie currency was relatively stable after commenting on the situation, Australia Prime Minister Scott Morrison said the coronavirus outbreak in Victoria State is only localised. The National Cabinet will continue plans to further ease restrictions. Morrison said “We remain on track in dealing with the coronavirus, the curve remains flat.”
Despite the PM’s optimistic tone, the new cases are a setback to plans to rekindle intra-Australia travel, and the economic recovery.