Turkish situation helps the Pound (Daniel Johnson)

GBP/AUD – Sterling has gained ground against against the Aussie of late. I would not put this down to Sterling strength however. I think the rise in the Pounds value can be attributed to a lack of investor confidence in commodity based currencies following the situation in Turkey.

With the severe fall in Turkish Lira and the lack of monetary policy intervention investors have been seeking safe haven investments. If the US-Turkish trade war escalates this could again have knock on affects to the Australian Dollar. We have seen the situation ease in the last 24hrs as Qatar have offered financial support to Turkey.

Despite the Australian monetary policy outlook not being particularly favorable the uncertainty on the Brexit situation outweighs any concerns for the Australian economy.

GBP/AUD now sits just above 1.75. I believe there is potential for Sterling to fall further due to the lack of clarity surrounding Brexit. With a “no deal” scenario still a possibility the Pound remains anchored at low levels against the majority of major currencies.

If you have to move short term buying the Aussie I would take advantage of current levels.

If you have a currency requirement I would be happy to assist. If you wish to maximise your return it is important to be in touch with an experienced broker. If you let me know the details of your trade I will endeavour to produce a trading strategy to suit your needs. If you have a currency provider in place I am willing to perform a live comparison and I am confident I will be able to demonstrate a considerable saving. It will only take  a couple of minuites and could be well worth your while.

You can trade in safety knowing your trading with Foreign Currency Direct PLC, a company  trading for over 16 years. Our accounts are published online at companies house and we are FCA registered.

If you would like my help I can be contacted at dcj@currencies.co.uk. I look forward to hearing from you.

Pound makes gains vs the Australian Dollar after Turkish issue and UK inflation data due out (Tom Holian)

The Pound has made some gains vs the Australian Dollar over the last few days and the move appeared to happen following the news in Turkey that Donald Trump has imposed an addition to tariffs on both steel and aluminium on Turkey and this started to cause huge problems in the country.

The Turkish Lira has dramatically weakened in value over the last few days and this has caused a number of commodity based currencies to weaken as global investors have sold off riskier based currencies including the Australian Dollar.

After briefly flirting with rates in the 1.73 levels recently the Pound vs the Australian Dollar is now back to trading above 1.76.

Meanwhile, the Reserve Bank of Australia confirmed recently that it will be keeping interest rates on hold while it waits for economic growth to improve and this has also helped the Pound to make gains vs the Australian Dollar and the Australian Dollar is now at its lowest level vs the US Dollar in two years.

The RBA does not appear to be too concerned with the value of the Australian Dollar and because it is a big export market if the AUD continues to weaken then this could help to improve economic growth in Australia.

The UK and the Pound has had a good start to the week against a number of different currencies with the news that UK unemployment is close to its lowest levels since 1975 with the figure now sitting at 4%.

We could be in for further movement later this morning with the release of UK inflation data due to be published at 930am.

Inflation has been a big factor in the Bank of England’s recent decision to increase interest rates and with the data expected to show 2.5% year on year which is above the 2% target then this could provide further evidence in support of further rate hikes in the UK which could help to move GBPAUD exchange rates in an upwards direction.

If you would like a free quote or further information about how to save money compared to using your own bank when converting Australian Dollars then contact me directly and I look forward to hearing from you.

Tom Holian teh@currencies.co.uk 

 

 

AUD Forecast – Economic Crisis in Turkey is Negatively Impacting the AUD (Matthew Vassallo)

Sterling has made inroads against its AUD counterpart over the past few days, with GBP/AUD rates moving back above 1.76.

The AUD and other commodity-based currencies have seen their value dip, since the Turkish economic crisis deepened towards the later part of last week.

The Turkish Lira (TYR) has hit record lows against the USD, with inflation levels in Turkey hitting a staggering figure of 15%. The Turkish stock market has fallen by over 17%, causing investors to panic, whilst also sapping their risk appetite.

When the global markets stutter and investors risk appetite falls, usually commodity-based currencies feel the negative effects first. These are considered riskier assets by investors, which are generally sold-off in times of global market uncertainty. This is one of the reasons why the Pound has made inroads against the AUD over the past few days but the key question now, is how much higher is Sterling likely to go?

With UK Prime Minister Theresa May on holiday, Brexit talks will remain on hold until her return. This means that the current crisis in Turkey is likely to dominate headlines over the coming days, which could lead to further pressure on the AUD.

The UK economy also received a boost this morning, following the release of the latest UK Unemployment data. The official Unemployment Rate fell to 4%, which could also help to support GBP around its current levels.

Moving forward and the markets concerns over Brexit have not disappeared and are likely to resurface before long. Therefore, if I was holding Sterling and looking to buy AUD, I would be keeping a close eye on market developments in the short-term, rather than holding out for any longer-term sustainable gains.

If you have an upcoming AUD currency transfer to make, you can contact me directly on 01494 787 478. We can help guide you through this turbulent market and as a company we have over eighteen years’ experience, in helping our clients achieve the very best exchange rates on any given market.

Our award winning rates can be accessed very easily over the phone and I can keep you posted with key market developments ahead of any prospective exchange you need to make.

Feel free to email me directly on mtv@currencies.co.uk to find out all the options available to you ahead of your currency transfer.

To what extent will Turkish sentiments drive GBPAUD this week?

The Australian dollar has been weakening as investor sentiments are frayed following the Turkish concerns which have been rattling financial markets. Essentially riskier assets are being sold off in favour of safer haven investments like the US dollar and Japanese Yen. The Turkish currency is being sold off and the funds are finding their way into the US dollar, creating big swings on other currencies like the Aussie.

GBPAUD has risen almost 1% today as investors also sell the Australian dollar because they feel it could also be at the mercy of the same sentiments which have driven the Turkish lira lower. For many years the cheap flow of money from the US in the form of QE (Quantiative Easing) had found itself invested  globally in emerging markets which offered higher returns.

With the market becoming spooked at the potential of further sell-offs, we could easily see a further deterioration in the Australian dollar which would see it become more expensive to buy. The outlook is not all rosy for AUD buyers with sterling however, as the rising US dollar is weighing the pound down too.

GBPAUD could be in for a very volatile period as the market struggles to price in the uncertainty up ahead. The market is eagerly looking for some kind of solution to the crisis which could easily spread to other investments and currencies. The problems in Turkey are not just effecting Turkey, many European banks have huge exposure to Turkish investments.

There is also important data due for the UK with Unemployment Tuesday, Inflation on Wednesday and Retail Sales Thursday. On the Australian side we have Unemployment data released Thursday, all in all a busy week ahead for GBPAUD.

I foresee a levels in the mid-1.70’s following a testing of the 1.73 level last week. In the absence of a new negative news I see sterling finding some support, the Turkish pressures should also ensure the Australian dollar is not appreciating too much.

For more information on the best rates and strategy to maximise your deal, please speak to me Jonathan Watson by emailing jmw@currencies.co.uk.

Thank you for reading and I look forward to hearing from you.

GBP/AUD – Breakthrough in Brexit Talks? (Daniel Johnson)

GBP/AUD – Reports yesterday emerged which indicate the EU could provide concessions on the Brexit deal. There could be the possibility that the UK  will have access to the single market for goods and services whilst opting out of the free movement of people. The UK would have to replicate all EU social, environmental  and customs laws.

We did see Sterling strengthen slightly, but firm news will be needed to see substantial gains. There is still the possibility of a “no deal” scenario which is keeping Sterling anchored against he majority of major currencies. Trade Secretary,  Liam Fox recently stated he believes there is a 60% chance of a “no deal” which hit the Pound hard.

The Reserve Bank of Australia (RBA) decided to keep interest rates on hold this week and the speech relating to the decision by RBA Governor , Philip Lowe was slightly pessimistic which would normally cause AUD weakness. This was not the case against Sterling however, Brexit uncertainty outweighed the poor monetary policy outlook from down under and Sterling continued to suffer. This is a very worrying market reaction and shows the lack of investor confidence in Sterling.

If you have a currency requirement I will be happy to assist. It is crucial to be in touch with an experienced broker when the market is currently so hard to predict. If you let me know the details of your trade I will endeavour to produce a free trading strategy to suit your individual needs. Have faith knowing you will be dealing with a brokerage in business for over 16yrs, Foreign Currency Direct Plc. We are a no risk entity as we do not speculate on the market and we are registered with the FCA. If you have a currency provider take a minute to send over the rates they offer and I am confident I can demonstrate a significant saving.  I can be contacted at dcj@currencies.co.uk . (Daniel Johnson) Thank you for reading.

Sterling Falls Lower against Australian Dollar – Brexit Jitters (James Lovick)

The pound has fallen even lower against the Australian dollar with rates briefly falling below 1.73 for the GBP AUD pair. The Australian dollar outlook isn’t looking that great at the moment with the ongoing trade war between the US and China. Only yesterday the US agreed a further 25% tariff on Chinese imports worth $60 billion. China is likely to retaliate further and it has even been reported that President Donald Trump is considering putting tariffs on everything the US imports from China which equates to about $500 billion. Already the Chinese stock markets are taking the brunt of this and if China does move into a downturn then this could end up harming the Australian dollar. Australia’s major export iron ore is sent to China in large volumes for steel production and so any global slowdown could see demand for this commodity fall sharply proving negative for the Aussie as a commodity currency.

The Reserve bank of Australia will be releasing the Monetary Policy Statement tomorrow which could offer some more clues as to when then the central bank may look to raise interest rates again. Although the next move is anticipated to be upwards the next hike is likely to be someway off yet.

Despite the above the pound has still managed to fall considerably lower against the Australian dollar this week although this is down to Brexit uncertainty in the UK following comments from both Bank of England Governor Mark Carney and Trade Secretary Liam Fox. Both have suggested there is a strong likelihood of a no deal Brexit which is spooking the markets and seeing the pound tumble. Until clarity is offered which is not likely to come until after the summer parliamentary recess the pound could see further losses. If the UK & EU cannot agree in the coming months on a withdrawal agreement then sterling is likely to fall lower.

For more information on Australian dollar exchange rates and how to achieve the best rates for buying or selling dollars then please get in touch with me James at jll@currencies.co.uk

GBP/AUD Forecast – AUD Makes Gains Against Sterling as Brexit Crisp Deepens (Matthew Vassallo)

GBP/AUD rates have fallen by over 4 cents in the past week, as fears over a no-Brexit deal continue to intensify.

Reports this week have indicated that there could be a 60% chance that no deal is reached, a scenario that could have potentially devastating consequences for the UK economy.

Sterling had been trading above 1.78 last week but has fallen below 1.74 during this morning’s trading. It is clear that investor confidence in the UK economy is on the slide, with the Pound coming under pressure against all of the major currencies, including the AUD.

Those clients holding the Australian Dollar have been given some respite, with the AUD finding some much-needed support over the past couple of weeks.

Whilst its value has been somewhat artificially boosted following a sell-off of Sterling positions, there seems to have been a cooling of the trade standoff between the US & China (Australia’s largest trade partner). President Donald Trump has turned his attentions to Iran, hitting the country with increased sanction, whilst also vowing to alienate any country or company who attempts to do does business with them.

This in turn has moved the markets focus away from the US’s trade standoff with China, as such boosting global market confidence. When this happens, investors risk appetite goes up and commodity-based currencies such as the AUD can benefit.

The AUD’s run has continued, hitting 1.7346 against Sterling at its high this afternoon. This level seems to offer good value for those clients selling AUD, especially when you consider it’s recent woes.

If you have an upcoming GBP or AUD currency transfer to make, you can contact me directly on 01494 787 478. We can help guide you through this turbulent market and as a company we have over eighteen years’ experience, in helping our clients achieve the very best exchange rates on any given market.

Our award winning rates can be accessed very easily over the phone and I can keep you posted with key market developments ahead of any prospective exchange you need to make.

Feel free to email me directly on mtv@currencies.co.uk to find out all the options available to you ahead of your currency transfer.

Australian dollar rises slightly on RBA decision and a more positive outlook!

The Australian dollar has strengthened slightly on a more positive backing from the RBA, Reserve Bank of Australia. By not being too dovish or soft in their outlook, the Australian dollar has risen. The market is loosely expecting an interest rate hike in the future but this could now be as far ahead as 2020! Some had expected the RBA to be more negative last night, however they were quite positive about the Australian economy.

This has seen the Aussie dollar rise against all currencies, notably the pound and even the US dollar. GBPAUD has been driven into the 1.74’s whilst AUDUSD has risen to 0.7430. Expectations for the Australian dollar centre around the progress of their economy, Governor Lowe will give a speech later this week which could see further news to move the Australian dollar.

Last night’s interest rate decision moved the market as it was more positive than many had expected. It is now believed that in the future the global trade wars which have been raised as a concern which might negatively impact the Australian dollar, may not been such bad news. Tracking the data from China and the commentary from the RBA shows that perhaps this issue will not be as detrimental for the Australian dollar as believed.

Whilst stating they were not overly concerned at the moment from the slowdown in China, this was highlighted as a potential issue for the future and this could well be something that weakens the Australian dollar in the future.

If you need to buy or sell Australian dollars getting the best information is key to being able to track the upcoming news which might move the markets. For more information on the latest trends and themes which will influence the value of your exchange, please speak to me Jonathan by emailing jmw@currencies.co.uk

Australian Dollar Boosted on Stronger Retail Sales (James Lovick)

The Australian dollar has been boosted following a jump higher in Australian retail sales which saw the best performance in over a year. The better data signals a buoyant consumer market which should lend support to the Australian economy. The numbers jumped 1.2% for the last quarter which is considerably higher than the 0.8% that was expected and welcome news in that Australia has also suffered with weak wage growth which has been squeezing pockets down under.

The Reserve Bank of Australia meet on Tuesday to discuss interest rates although there is unlikely to be any change at this meeting. Interest rates are currently set at 1.5% and whilst no change is expected any comments following the meeting from RBA Governor Philip Lowe could see a market reaction for the Aussie.

Rates for GBP AUD are currently hovering around 1.75 for the pair and testing the lower levels seen in its recent range. Much of the slide has stemmed from the uncertainty in the UK over Brexit in recent weeks. Despite an interest rate increase last week from the Bank of England the pound has actually fallen after Governor Mark Carney suggested that the chance of a no deal Brexit was uncomfortably high. The pound has been trading on the back foot following on from his comments which have made the markets uneasy hearing this from the top. Until clarity is offered the pound is likely to remain under pressure against the Aussie. There is currently a good opportunity to sell Australian dollars for pounds and any additional uncertainty on Brexit could see the pound weaken further. British politics have gone into sleep mode with the summer parliamentary recess but expect more volatility for the pound towards the end of the month.

For more information on Australian dollar exchange rates and for assistance in making transfers at the best rates then please get in touch with me James at jll@currencies.co.uk

Australian Dollar still weakens as ASX falls due to U.S-China trade tensions

The Australian Dollar has had another fairly tough week against most major currencies, with the main reason being put down once again to the growing trade tensions between the U.S and China that do not appear to be going away soon.

These tensions are also weighing on the Australian share market, with commodities prices losing value the higher the tensions are.

U.S proposals are still not being taken well by China and the threats from China to take countermeasures are merely adding to global investors steering away from the perceived risk of the Australian Dollar and moving into safer haven currencies.

I have personally felt that the Australian Dollar would be in for a tough time for a while now, it is still managing to hold it’s ground at the moment with everything being taken into account, but I do feel that the issues with China will continue to weigh on the value of the Australian Dollar, not just the trade wars but also the growing levels of debt in the Chinese economy which have been a problem for quite some time now.

As many regular readers will know Chinese issues can impact the value of the Australian Dollar due to the sheer volume of goods and services that China import from Australia and also the huge amount of tourism that China provides to the Australian economy too.

All eyes will continue to be on Trump’s next move and also the U.S data release which is Non-Farm payroll data due out during trading on Friday. This release can impact global attitude to risk therefore can impact the value of the Australian Dollar too.

If you have a transaction to carry out involving exchanging Australian Dollars into any major currency, or buying Australian Dollars with any major currency then it would be well worth getting in touch with me directly.

You can contact me, Daniel Wright on djw@currencies.co.uk if you would like more information on how I can help you and I will be happy to get in touch personally.