Australian Dollar fights back against the Pound

The Pound to Australian Dollar exchange rate hit a high of 2.2000 last night almost a 10 percent improvement of the years low. But for Expats and those migrating to Australia the relief was short lived as the Pound continues to crumble due largely to Pound to US Dollar exchange rate playing catch up to the recent moves in other currencies against the US Dollar and worsening economic conditions plummeting as inflation hits 5 percent. Added to the Pound's woes was Barclay's announcement today that it has moved forward its time frame for the Bank of England cutting rates later this year as the UK economic conditions continue to weaken .

We tend to agree with Barclay's that if Bank of England stays focused on inflation - growth and consumer confidence will tumble and the recession will become a certainty.

In Australian local financial news the Commonwealth Bank of Australia announced its annual profit by 7 per cent and forecast the local economy to grow modestly amid continued headwinds from the global credit crunch.

Net profit for the year ended June 30 rose to $4.791 billion while the bank's preferred measure of profitability, cash earnings, rose 4.6 per cent to $4.733 billion.

Yet again banks not understanding why we complain about services, fees and interest rates on our Australian Mortgages. They seem to be oblivious to the consumer and the consumers needs.

A rant for another day.

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