The Pound has suffered punishing losses against all its major rivals in recent weeks but it's still up almost one percent against the Aussie for 2019 and will rise a further five percent before the year is out, according to the latest forecasts from Westpac.
The Australian Dollar was buoyant Tuesday after falling stockpiles at Chinese ports drove iron ore prices up by almost five percent, ahead of the latest batch of housing market data, but analysts at Westpac have cut their forecasts for the Antipodean currency and now project further losses before the year is out.
The Australian Dollar will probably not hold onto its post-election gains as the old problems which shaped the previously bearish outlook remain, says Andrew Watrous, an analyst at Morgan Stanley, who retains a bearish outlook for the currency.
Pound Sterling is likely to rise by more than five percent against the Australian Dollar before year-end and losses in a 'no deal' Brexit scenario might be limited to less than four percent, according to forecasts from Capital Economics.
The Aussie Dollar slumped during the overnight session and into Tuesday after the Reserve Bank of Australia suggested strongly that an interest rate cut is now imminent, which has helped to put a floor under the Pound-to-Australian-Dollar rate after a week of steep losses.
The Australian Dollar was riding high at the top of the G10 league table Monday following a surprise win for the coalition government in Sunday's general election, although analysts are saying that gains for the Antipodean currency could prove short-lived.