The Australian Dollar was in the bull after the Reserve bank of Australia (RBA) kept its official cash rate unchanged at a rater low record-low of 1.50 percent like what analysts and investors are expecting. The statement was accompanied with the announcement of a firmly neutral, reinforcing the likelihood that the central bank will remain on hold for some time yet.
With that being said, the currency’s slightly upward direction may reflect a near-term bet on a more unstable rise and falls in the market and a significant follow through may seem highly unlikely.
The U.K. Manufacturing data from the Purchasing Managers Index show a relatively tined down European Data marker. The forecast points to a slight sluggish in terms of the pace of factory-sector activity in April when compared with the prior month.
The United Kingdom economic news-flow has been increasingly underperformed relative to consensus forecasts since the middle of February, which gives analysts the idea, that perhaps they’ve forecasted an overly optimistic which gives investors a weak point for a surprising drop in the market.
The allegations of a soft outcome for the British pound may be somewhat counter-intuitive. The markets are uncertain that the BOE is at a pause for the near future. A rate hike is not priced through 2018. With that to worry about, signs of a sluggish support for the British sterling may soften the tone of the effects of the Brexit.