{"id":100320,"date":"2020-05-20T12:00:23","date_gmt":"2020-05-20T16:00:23","guid":{"rendered":"https:\/\/currencylive.com\/news\/?p=100320"},"modified":"2020-05-20T15:11:01","modified_gmt":"2020-05-20T19:11:01","slug":"103252-gbp-aud-pound-slumps-to-7-month-low-against-aussie-dollar","status":"publish","type":"post","link":"https:\/\/currencylive.com\/news\/103252-gbp-aud-pound-slumps-to-7-month-low-against-aussie-dollar\/","title":{"rendered":"GBP\/AUD: Pound Slumps to 7-Month Low against Aussie Dollar"},"content":{"rendered":"

The British pound<\/a> is lower against the Australian dollar on Wednesday.<\/p>\n

The increasing possibility of negative interest rates in the United Kingdom following testimony from the Bank of England\u2019s Andrew Bailey pulled the pound lower.\u00a0A turnaround in market sentiment by the afternoon boosted the Australian dollar, which has been moving in sync with US stock indices.<\/p>\n

Pound versus Australian dollar was down by 184 pips (-0.99%) to 1.8553 as of 4pm GMT.<\/p>\n

GBP\/AUD <\/a>slumped below 1.87, dropping to new weekly lows at 1.855 and the lowest since early October last year. Yesterday the exchange rate rose +0.27% but for the week it is down again by -1.67%.<\/p>\n

Check real time GBP to AUD exchange rate<\/span><\/a><\/div>\n

GBP: Bailey talks negative rates<\/h2>\n

The pound is facing a number of headwinds at the moment, one of which is the prospect of looser monetary policy from the Bank of England. BOE Governor Andrew Bailey told MPs in the Treasury Select Committee on Wednesday that the central bank has the lower bound for interest rates and negative interest rates under \u2018active review\u2019.<\/p>\n

Having the policy under active review doesn\u2019t mean it will be enacted but in \u2018central bank speak\u2019 these kinds of vague references to a policy are often used as a way to communicate to investors the possibility that new policy will come in further down the track.<\/p>\n

As a reminder, the currency of country typically drops in value against other currencies when the interest rates of that country are expected to fall relative other countries.<\/p>\n

AUD: Aussie correlating with S&P 500<\/h2>\n

This is one reason the Australian dollar is faring much better against the pound. Bailey\u2019s testimony contrast with the Reserve Bank of Australia\u2019s Philip Lowe who in minutes released yesterday left the door open to loser policy but has made a distinct point of having no intention to drop interest rates lower than 0.25%, the current level and a record low.<\/p>\n

The Australian dollar has been correlating strongly with US stock markets, notably the S&P 500. The idea is that global businesses like the top 500-listed companies in America are sensitive to global growth, just like Australia, which is very dependent on its commodity exports.<\/p>\n","protected":false},"excerpt":{"rendered":"

The British pound is lower against the Australian dollar on Wednesday. The increasing possibility of negative interest rates in the United Kingdom following testimony from the Bank of England\u2019s Andrew Bailey pulled the pound lower.\u00a0A turnaround in market sentiment by the afternoon boosted the Australian dollar, which has been moving in sync with US stock […]<\/p>\n","protected":false},"author":163946608,"featured_media":47026,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[1547,1379],"tags":[2687,1603,1860,2757,2495],"class_list":{"0":"post-100320","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-aud","8":"category-gbp","9":"tag-aud-gbp","10":"tag-aussie","11":"tag-gbp-aud","12":"tag-negative-rates","13":"tag-sp-500"},"acf":[],"yoast_head":"\nGBP\/AUD: Pound Slumps to 7-Month Low against Aussie Dollar - Currency Live<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/currencylive.com\/news\/103252-gbp-aud-pound-slumps-to-7-month-low-against-aussie-dollar\/\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Jasper Lawler\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"2 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\\\/\\\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\\\/\\\/currencylive.com\\\/news\\\/103252-gbp-aud-pound-slumps-to-7-month-low-against-aussie-dollar\\\/#article\",\"isPartOf\":{\"@id\":\"https:\\\/\\\/currencylive.com\\\/news\\\/103252-gbp-aud-pound-slumps-to-7-month-low-against-aussie-dollar\\\/\"},\"author\":{\"name\":\"Jasper Lawler\",\"@id\":\"https:\\\/\\\/currencylive.com\\\/news\\\/#\\\/schema\\\/person\\\/7cdd4328aaa82c6c13caee5961755200\"},\"headline\":\"GBP\\\/AUD: Pound Slumps to 7-Month Low against Aussie Dollar\",\"datePublished\":\"2020-05-20T16:00:23+00:00\",\"dateModified\":\"2020-05-20T19:11:01+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\\\/\\\/currencylive.com\\\/news\\\/103252-gbp-aud-pound-slumps-to-7-month-low-against-aussie-dollar\\\/\"},\"wordCount\":397,\"image\":{\"@id\":\"https:\\\/\\\/currencylive.com\\\/news\\\/103252-gbp-aud-pound-slumps-to-7-month-low-against-aussie-dollar\\\/#primaryimage\"},\"thumbnailUrl\":\"https:\\\/\\\/currencylive.com\\\/news\\\/wp-content\\\/uploads\\\/2019\\\/10\\\/GBP-aud-broke-ascending-support-line.jpg\",\"keywords\":[\"aud\\\/gbp\",\"aussie\",\"gbp\\\/aud\",\"negative rates\",\"S&P 500\"],\"articleSection\":[\"AUD\",\"GBP\"],\"inLanguage\":\"en-US\",\"copyrightYear\":\"2020\",\"copyrightHolder\":{\"@id\":\"https:\\\/\\\/currencylive.com\\\/news\\\/#organization\"}},{\"@type\":\"WebPage\",\"@id\":\"https:\\\/\\\/currencylive.com\\\/news\\\/103252-gbp-aud-pound-slumps-to-7-month-low-against-aussie-dollar\\\/\",\"url\":\"https:\\\/\\\/currencylive.com\\\/news\\\/103252-gbp-aud-pound-slumps-to-7-month-low-against-aussie-dollar\\\/\",\"name\":\"GBP\\\/AUD: Pound Slumps to 7-Month Low against Aussie Dollar - 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