Hi All,

Here’s an update of what’s been happening in the Currency Markets over the last week.

Looks like the lovely weather we had recently is starting to trickle away (at least down in Windsor that is) and I’m sure that many of you are looking forward to jetting off to sunnier climes over the coming months! (if your not already there that is)

GBP/AUD dipped below the psychological 2.00 level last week (if only momentarily), with Sterling dented by concerns of political uncertainty and the Aussie buoyed after data showed Australia dodged a recession, fanning speculation the RBA is in no hurry to cut interest rates.

Australia’s economy expanded last quarter as its best trade performance in 48 years helped offset a slump in business and housing investment, putting it among the few developed economies to have avoided recession. A government report on Wednesday showed GDP rose 0.4% in the three months to March from the previous quarter when it fell a revised 0.6%. The Central Bank also skipped a chance to cut again at its June policy meeting on Tuesday, pointing to stabilisation in the global economy and pockets of improvement at home.

As mentioned above, last week we witnessed sterling dip as concerns of Political uncertainty had an effect on the pound with investors seeing sterling as an ‘unattractive’ asset to invest in.

Some negative data from the UK showed that UK Construction output was down 9% on the first quarter, which also didn’t help the pound last week.

As per usual we will post a further update next week.

GBP/AUD - High’s & Low’s of last week (01/06/09 – 05/06/09)

High: 2.0496 AUD
Low: 1.9878 AUD

Difference on £200k

High: 409,920 AUD
Low: 397,560 AUD

So a difference of 12,360 AUD

Whilst FX certainly isn't the most thrilling of subjects, the sooner you begin to think about your money transfers, the more likely you are to make your money go further.

Best Regards,

Jon Sermon