The Pound Australian Dollar Rate is 0.073% higher on the day with 1 GBP = 1.6092 AUD. The Pound Euro exchange rate is 0.294% higher on the day with 1 GBP = 1.1734 EUR. The Pound Dollar exchange rate is 0.323% higher with 1 GBP = 1.6166 USD. There is no doubt that foreign exchange investors are starting to view the UK economy in a more positive light. The result is broad based support for the British Pound. In line with its movement across the board yesterday the pound gained against the Australian Dollar as the threat of QE diminishes. The British Pound leapt up from its recent lows, gaining over a cent following the BoE’s Inflation Report and the price has been given another nudge higher this morning following some disappointing Australian employment figures. Unemployment unexpectedly rose to 5.4% in October, against forecast for a modest fall in the rate. The figures are unlikely to alter the RBA’s stance on interest rates too dramatically but it may give them pause for thought. The other data overnight was from China, which revealed that inflation sped to a 25-month high in October, pointing to the likelihood of more policy tightening. But the market took the data calmly having priced in a higher CPI reading. Sterling is now edging closer to 1.61 as the aussie comes under a little pressure. With the problems embroiling the eurozone risk appetite is taking a knock and with the price of gold back also below $1,400 per ounce, the aussie’s rally has lost some of its shine. A significant turnaround for sterling may still be some way off but the price looks comfortable above 1.60 heading into the weekend, particularly with the G20 in focus.

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