Australian Dollar buying rates set to improve, Trump’s actions will decide just how much…(Joshua Privett)

Last week Australian Dollar buying rates cheapened following a very illuminating speech given by Theresa May on Tuesday. This website and many others have fleshed out the specifics of the speech over and over again due to its signficance to the Brexit proceedings, the UK economy, and therefore to the value of the Pound.

GBP/AUD rates soared following the revelation in May’s speech that she had paved the way for Parliament’s continued involvement in the Brexit negotiations and in voting on any eventual deal reached.

Parliament throughout history is seen by financial markets as a moderating actor. This essentially implied some hope to the currency world that any potential harsh or damaging measures will be avoided. Whatever your politics, whether you wish for a hard Brexit or not, if you have a currency requirement you’ll have to grapple with the fact that currency markets appreciate slow change and startle easily to upsets in the status quo.

Now that May gave markets her aims, the final piece of the puzzle expected in January, is the Supreme Court decision to be released on Tuesday morning at 9:30am.

Now that we know Parliament will be ‘along for the ride’, we need to know if they will be part of the process to trigger the formal beginnings of the Brexit negotiations. Given the content of Theresa May’s speech, this seems a foregone conclusion, and should boost the Pound further to complement a fantastic day for anyone with an upcoming AUD buying requirement recorded last Tuesday.

So what is the wildcard on what is set to be a fairly positive week? Who else? Trump is set to make his first waves in office in his first full week. He’s already saying the media was lying about how few people were at his inauguration, and is trying to mend relations with the intelligence community.

He is facing his first 100 days in office, will he focus on healthcare and immigration, or will he make waves on the jobs front? It is a question as to whether his actions will attract investors away from the high yielding interest returns on the Australian Dollar. If it does, the AUD will become cheaper through decreased demand.

So watch this space, with so much governed by politics a premium will be put on being able to move quickly should any news come out which improve or create added expense to a planned currency exchange.

As such is you are planning on making a currency exchange involving the Pound and the Australian Dollar, it is well worth your time getting in contact with me on jjp@currencies.co.uk to ensure you are in a well-informed position to make a decision on your particular transfer, and can benefit from the highly competitive exchange rates from one of the UK’s leading foreign currency exchange brokerages.

Just provide me with a basic outline of your requirement, and I will be in contact with you as soon as possible while markets are quiet preceding the Monday rush.

The Trump Factor and impact on the Australian Dollar (Tom Holian)

With Donald Trump now having been officially inaugurated into the White House it appears as though the US Dollar has fallen as investors review his first speech.

In what was a relatively protectionist tone we could see a global flight to safety which means global investors seek to move money into the US economy and away from riskier currencies including the Australian Dollar.

The US economy has gone from strength to strength during 2016 and this is one of the reasons for the strength of the Australian Dollar against Sterling for the last few months.

However, could we now see some weakness on the horizon for the Australian Dollar against the Pound?

With Prime Minister Theresa May coming out earlier this week and being rather bullish in her speech concerning Brexit the Pound quickly made some very strong gains vs the Australian Dollar providing some much needed respite from the problems seen recently.

There is little economic data due out next week for the UK and Australia until Wednesday so I expect GBPAUD rates to be driven by sentiment towards Donald Trump’s first few days in office and therefore we could see Sterling make some further gains vs the Australian Dollar.

If you’re in the process of needing to either buy or sell Australian Dollars and are concerned about what may happen between GBPAUD rates in the next few weeks as the Brexit talks continue to dominate the headlines then it may be worth looking at buying a forward contract which allows you to fix an exchange rate for a future date for a small deposit.

If you have a currency transfer to make and would like to save money on exchange rates when buying or selling Australian Dollars compared to using your own bank or other currency broker then feel free to contact me for further information or for a free quote. Having worked in the industry since 2003 I am confident that with my experience I can help and I look forward to hearing from you.

Tom Holian teh@currencies.co.uk

 

 

Sterling holds on to it’s recent gains versus the Australia Dollar, will GBP/AUD approach 1.70 once again? (Joseph Wright)

The Pound has been climbing since Tuesday when the UK PM, Theresa May gave clarity to the UK Governments Brexit plans.

Uncertainty almost always weighs on the underlying currency in question and the Pound had felt the effects prior to her speech on Tuesday, but in it’s wake the Pound had one of it’s best days in years and gained against the US Dollar by it’s largest margin since 2008.

At the time of writing the Pound to Australian Dollar exchange rate is trading around the 1.63 mark and I wouldn’t rule out a move above 1.65 if the positive sentiment surrounding the Pound continues.

It’s also important to note that today is the day of Trump’s inauguration in the US, and due to the potential impact of his Presidency right from the onset, I wouldn’t be surprised to see investors lose interest in risk-correlated currency such as AUD, and prefer to hold funds within safe haven currencies such as the Swiss Franc or Japanese Yen. Should this be the case it’s likely that the Aussie Dollar will suffer, which could aide the GBP/AUD pair and push it above 1.65.

There are no major economic data releases today out of the UK or Australia so I expect sentiment and Trump’s inauguration to drive the pair, and moving forward if you wish to be kept updated with key data releases feel free to get in touch.

If you are planning to make a currency exchange involving the Pound and another foreign currency, it’s well be worth your time getting in contact with me on jxw@currencies.co.uk in order to ensure you make a well informed decision on when to make that particular transfer, as well as benefiting from highly competitive exchange rates from one of the UK’s leading foreign currency brokerages. Just provide me with a basic outline of your currency requirement and I will be back in touch with you as soon as possible.

GBP AUD Exchange Rates – Focus on Supreme Court Ruling (James Lovick)

The pound has made good gains against the Australian dollar with rates for GBP AUD sitting just over 1.63. The pound still maintains the higher ground following from UK Prime Minister Theresa May’s Brexit outline which was received by the markets very positively with gains of around 2% immediately after.

Politics continues however be the driving force for sterling exchange rates and this is not going to change any time soon. The next date in the diary is Tuesday 24th January which has been confirmed as the date the Supreme Court ruling will give its verdict on whether Theresa May must consult Parliament before invoking Article 50.

We are expecting to see huge volatility once the outcome has been offered and it is understood that both sides are going to receive early sight of the verdict to prepare accordingly. New direction for the pound is expected to be seen immediately and the direction of movement will depend on the outcome.

For those individuals that have a pending requirement either buying Australian dollars or selling Australian dollars then it would be wise to make contact to discuss the options available to you. The pound made gains in excess of 3% against some currencies just two days ago and any repeat on Tuesday will mean there are both winners and losers. On larger amounts this makes a considerable difference often in the 000’s, for example from a property sale / purchase.

Australian inflation numbers are released overnight as well as employment data which is likely to create volatility for the Aussie. Unemployment is expected to rise to 5.8% from 5.7% which would signal a slight worsening in the Australian economy which could see some dollar weakness.

If you would like further information on Australian dollar exchange rates and to discuss how we can assist then please feel free to contact me on 0044 1494 787 478 and ask one of the team for James. Alternatively, I can be emailed directly on jll@currencies.co.uk

Exchange rates for buying Australian Dollars hold onto this weeks improvements (Joshua Privett)

The value of the Pound has had a largely nervous and tentative beginning to this year, but for the first time rates for buying Australian Dollars have held their value following a significant improvement.

The root cause for the positive movement was a speech pencilled in last minute by Theresa May, finally releasing her objectives to the marketplace for the upcoming negotiations.

The fundamental point which was taken away from her speech, from the point of view of the financial markets at least, was that she heavily outlined a framework for Parliament’s continued involvement in the Brexit discussions and eventual decision making on the matter.

Parliament is seen as a moderating actor. A feature of the evolving Brexit landscape which will delay rather than accelerate, and one which tends to urge caution rather than bolder or extreme measures. Personal politics aside, the currency market as a whole has shown repeatedly that they wish for the UK to avoid a quick and hard exit from the EU, and on numerous occasions this worry has translated into a weaker Pound with its value being questioned.

The Supreme Court is set to rule next week on whether Parliament will be involved in the actual triggering of Article 50, but the hints given in May’s speech suggests she already knows the answer. The announcement will come next Tuesday at 9:30am. As such buying Australian Dollar rates may see improvement in the medium term.

However, AUD buyers should be wary that in the run up to March and the anticipated deadline for the triggering of Article 50, further political news and comments will continue to be released.

The last time Theresa May discussed her aims for the Brexit in an interview setting GBP/AUD fell by close to 2%, which was less than two weeks ago, and her counterparts across the Channel in Europe have also expressed their own tough words to the detriment of the Pound in the past. GBP/AUD fell by over 4% in a single day when the October ‘flash crash’ on the Pound was instigated by choice comments made by Francoise Hollande and Angela Merkel, the French and German Heads of State.

The closer we creep to March, understandably this market will be more twitchy and nervous, creating a portrait of greater downside risk for Australian Dollar buyers.

As such the sensible option would be for AUD buyers to take advantage of the recent gains, or see next Tuesday as the final point of opportunity – as after this, there is little more to be decided until the official commencement of the process to leave the EU in March. Effectively this should create a ‘sweet spot’ of opportunity for Australian Dollar buyers before this period begins.

Conversely, Australian Dollar sellers, based on your personal timeline, do not face the same level of urgency. The likelihood for a nervous market to produce sudden opportunities to buy the Pound fairly cheaply being quite high.

If you are planning to make a currency exchange involving the Pound and another foreign currency, it’s well worth your time getting in contact with me on jjp@currencies.co.uk in order to ensure you make a well informed decision on when to make that particular transfer, as well as benefiting from highly competitive exchange rates from one of the UK’s leading foreign currency brokerages. Just provide me with a basic outline of your currency requirement and I will be back in touch with you as soon as possible.

You can also speak to me directly on the phone by calling 01494 787 478 and asking reception to speak with Joshua.

Theresa May Boost sterling’s Value! – Will This Trend Continue? (Matthew Vassallo)

GBP/AUD rates spiked during yesterday’s trading, with the pair gaining almost two cents.

The Pound hit 1.6422 at the high before retracting slightly today slightly today, with the AUD finding support moving it back towards 1.63.

Sterling’s value had soared, following UK Prime Minister Theresa may’s speech regarding the UK’s Brexit.

This was her most detailed speech to date regarding how the government hopes to facilitate our exit from the EU, with Article 50 still scheduled to be triggered in March to start the formal process.

The Pound benefited from positive comments regarding a future relationship with the remaining EU states and made significant gains against all the major currencies.

The markets have been left in limbo for months regarding how the UK economy intends to prosper following our exit, so yesterday’s more detailed plan will have come as a relief to investors who have been craving some solid information to work with. Personally, I don’t think the speech gave us a real insight into future policies but of course the noises being made were that the UK would create a stronger economy, which still had a relationship with our closest neighbours.

Theresa May did state that we would no longer be part of the single market but hoped for new custom arrangements with the remaining 27 EU states and that we would still contribute to the EU budget but wasn’t specific regarding how much.

The AUD has benefited from a run of positive economic data and the uncertainty surround the UK economy at present. However, due to the fact the AUD is a commodity based currency and as such relies heavily on its export trade, in particular the export of its raw materials to China, any global slowdown in this sector will hit their economy hard and the AUD would likely lose value as a result.

If you have an upcoming GBP or AUD currency exchange to make and you are concerned by the increased market volatility of late, it may be wise to look at protecting the gains you’ve made, or limiting your losses with one of our forward contracts, rather than gamble on what has become an increasingly volatile and unpredictable market.

If you would like to be kept up to date with all the latest market movements ahead of your currency exchange, or simply wish to compare our award-winning exchange rates with your current provider, then please feel free to contact me on 0044 1494 787 478 and ask one of the team for Matt. Alternatively, I can be emailed directly on mtv@currencies.co.uk

Theresa May’s Brexit speech causes Sterling rally (Daniel Johnson)

May causes volatility on GBP/AUD

Theresa May spoke yesterday in took some of the uncertainty away from the markets buy outlining her intentions in regards to a UK exit from the EU.

She stated the UK can not remain in the single market as this would mean not leaving the EU at all. She did also announce that any agreement with the European Union would allow the freest possible trade in goods and services.” Investor confidence was returned and GBP/AUD currently sits in the 1.63.

EU leaders have stated the freedom of goods, services and workers is not realistic if there is restrictions on the free movement of people within the EU.

Personally, I think this is a very positive move for the UK, giving some clarity brexit. But it is important to realise it may not all be rosy from this point. I feel trade negotiation targets need to be extended from the current target of two years. Sir Ivan Rogers, UK ambassador to the EU recently resigned over the unrealistic time scale for exit and insufficient planning. Rogers thinks trade negotiations could take as long as ten years.

The US have been very forthcoming about getting a trade deal in place which should bring more confidence to investors, however it is important to look at the history of the US in previous trade negotiations. The quickest of which took four years.

US Interest Rate Levels could cause investors to leave the Australian Dollar

In December the Federal Reserve rose US interest rates and forward guidance has indicated there could be as many three more during 2017. Although forward guidance can be taken with a pinch of salt, this years guidance does bare more credence. Data from the US has been very positive and it seems Yellen will find it difficult to keeping rates on hold. It will be the popular destination for investors with higher return than previously and also a higher level of safety than the Australian Dollar. Employment figures have been dwindling down under and there has been large falls of employment in the mining sector. There are also rumours circulating Australia could lose its AAA credit rating which means the Aussie could be in for a rough year.

If you have a currency requirement I will be happy to assist. It is vital to be in touch with an experienced broker to try and maximise your return. I will be happy to provide a free strategy and also provide a rate comparison against your current provider should you have one. I can be contacted at dcj@currencies.co.uk. Thank you for reading.

 

 

Australian Dollar gains on USD and other majors – Drops against the Pound following ‘Brexit’ Speech (Daniel Wright)

Today turned out to be a mixed day for Australian Dollar exchange rates, seeing gains against the U.S Dollar yet losing a great deal against Sterling.

The main reason for this is that the Pound had the best day we have seen in months, posting large gains against every major currency which included a 2% gain over the Australian Dollar and led to the U.S Dollar falling across the board too.

For those looking to sell Australian Dollars and buy Sterling this may be the start of the trend turning around but only the next 24/48 hours will give us a true indication as to whether this is just a knee-jerk reaction or whether we are about to see Sterling exchange rates pick up dramatically.

If you are holding Australian Dollars and you need to bring them back into Sterling then now may be the time to act. We are only a few percent away from the best time to do this in three years and now that Sterling is creeping back into fashion this may be the time to start seriously considering the options available to you.

Today we have Consumer Confidence figures in Australia and tomorrow we will be focusing on unemployment data over in Australia, not to mention the Bank of England interest rate decision on Thursday in the U.K so we still have an extremely busy week to come for both the Australian Dollar and the Pound.

If you are in the position where you may need to buy or sell Australian Dollars for Sterling, Euros, Dollars or New Zealand Dollars in the near future then I can help you both in terms of getting a better price than other well known brokers in Australia and the U.K, along with offering an extremely proactive  and friendly service to help you maximise your exchange rates.

If you are in the position where you may appreciate my help or if you would merely like a simple quote to check that you are getting the best exchange rate you can then feel free to email me (Daniel Wright) directly. You can contact me on djw@currencies.co.uk with a brief description of what you need and I will be more than happy to contact you personally.

 

Will the Pound fall further against the Australian Dollar (Tom Holian)

The Pound has fallen against the Australian Dollar by almost ten cents since the turn of the year as the pressure on Sterling mounts.

Sterling has really struggled against all major currencies and as the price of iron ore has been rising recently this has seen the Australian Dollar strengthen against the Pound.

The Aussie Dollar is a commodity based currency and as such if the price of commodities rises, which in this case they have, then typically we see Australian Dollar strength vs Sterling.

With things seemingly going from bad to worse in the UK as the government eagerly anticipates the outcome of the Supreme Court ruling and Theresa May’s speech later today concerning her plans for Brexit if both go the wrong way we could see GBPAUD exchange rates fall below 1.60.

Theresa May has previously suggested that the UK may opt for a hard Brexit and if this is the case we could see problems ahead for Sterling against all major currencies including the Australian Dollar.

Although clearly the political impact will have more of an effect on Sterling vs the Australian Dollar we also see the release of economic data down under in the form of Unemployment data. The expectation is for 5.7% so any change could cause further volatility for the currency pair.

One option to consider if you need to buy currency in the weeks ahead and are worried about the ongoing uncertainty you may wish to consider buying a forward contract which allows you to fix an exchange rate for a future date.

Having worked in the foreign exchange markets since 2003 for one of the UK’s leading currency brokers I am confident not only of being able to offer you bank beating exchange rates but also help you with the timing of your transfer of funds.

If you need to buy or sell Australian Dollars and would like further information or for a free quote then contact me directly and I look forward to hearing from you.

Tom Holian teh@currencies.co.uk

 

 

 

Could GBPAUD break through 1.60? (Dayle Littlejohn)

Since the start of 2017 GBPAUD exchange rates have dropped from 1.7150 to 1.6250. To put this into monetary terms a 200,000 Australian dollar is now £6,458. For people converting sterling into Australian dollars or Australian dollars into sterling in the upcoming weeks or months the question they need to be asking is what has changed?

UK Prime Minister Theresa May announced last week ‘We’re leaving, we’re coming out, we’re not going to be a member of the EU.’ Within the same interview she also exclaimed that the UK would take back control of its borders whilst trying to negotiate a deal within the single market.

With EU leaders exclaiming to remain part of the single market the UK must adhere to free movement of people, it was no surprise the pound crashed after Mrs May’s comments.

National newspapers from the UK are suggesting the PM will suprisingly announce the UK is prepared to leave the single market on Tuesday. This is a change of tune from Mrs May and if true, I expect GBPAUD could break through 1.60.

If you are buying Australian dollars within the next 3 months it looks like your transfer will become more expensive the longer you procrastinate. If you are waiting for your sterling to become available we offer a forward contract which allow you to secure your rate now and you can pay later.

If you are buying or selling Australian dollar in the upcoming weeks, months or years feel free to email me with the reason for your conversion (company invoice, buying a property) and the timescales you are working to and I will email you with my forecast and the process of using our company drl@currencies.co.uk.

** If you are already using a brokerage and would like to know if you are receiving the best rates possible email me with the exact figures and I will reply with our live price. This will take you minutes and in the past I have saved clients thousands! **