08 Feb 2021
At the start of the second week in February, analysts questioned whether the Pound-Australian Dollar rate has peaked, having been rejected at 1.80 once more.
The pair was trending higher since January since the 7th of January and reached the strongest level on Friday, since the 10th of December, at 1.8023.
Reuters analyst martin Miller said, “Those expecting AUD/USD gains in this month will take comfort from seasonal trends. An analysis of AUD/USD's February performance since 2000 shows it has risen in 14 of the past 21 years. Seasonality should not be considered in isolation but combined with other factors it can be a useful tool.” Miller noted that during the second month of the year, the Aussie Dollar has a habit of traditionally record advances.
Moreover, Neil Wilson, Chief Market Analyst at Markets.com said, “The risk-on mood seems to be driven by a combination of falling case numbers in developed countries, whilst efforts by Congressional Democrats to pass Joe Biden’s $1.9TRN stimulus without Republican support has delivered a fresh shot of confidence into equity markets.”
On the other hand, the GBP/EUR exchange rate has been trading at 1.1532, and at 1.3792 against the USD. However, analysts are expecting the British Pound to be boosted, aided by the UK’s vaccination rollout as well as the Bank of England’s ending of negative interest rate, last week. "EUR/GBP is on track to get to 0.85 by mid-year as the risk of negative rates fades,” Société Générale's Kit Juckes noted.
The reasoning behind Euro-to-dollar exchange rate’s drop was the release of U.S. employment data, which was less than expected.