GBPAUD exchange rates on the charge (Dayle Littlejohn)

In recent weeks the pound has been making gains against the Australian dollar and presently GBPAUD exchange rates are trading at a 10 week high! A 200,000 Australian dollar purchase is now £8,000 cheaper compare to 10 weeks ago.

The reason for the shift in sentiment is that the Australian dollar has weakened and the pound has strengthened.

Australian dollar weakness stems from Donald Trumps appointment as President-elect. Mr Trump has a rocky relationship with China and before the Election he stated the he wanted China to pay a fee to import into the states.

With an uncertain period ahead for the two leading nations commodity currencies including the Australian dollar that heavily rely on China have taken a hit.

The pound has strengthened in recent weeks, because a soft Brexit is becoming more likely. Brexit secretary David Davis has exclaimed that the UK could pay money to the EU which would keep the country within the single market once the UK leave the European Union.

Looking ahead I think the pound will continue to make gains against the Australian dollar in the upcoming weeks however Brexit negotiations throughout quarter one of next year could devalue the pound and therefore the gains we have seen for Australian dollar buyers over the last couple of months could diminish.

If you are needing to convert Sterling and Australian dollars in the upcoming months and want to achieve competitive rates of exchange whilst receiving regular economic information feel free to email me the reason for the transfer (company invoice, property purchase) the timescales you are working to and I will respond with the options available to you along with the process of converting currency. My direct email address is drl@currencies.co.uk and I look forward to receiving your email.

Sterling hits best rate against the Australian Dollar since September (Tom Holian)

Pound vs Australian Dollar exchange rates have hit their best level to buy Australian Dollars with Sterling since September as the Pound continues to make advances against all major currencies this week.

Sterling has gained off the back of some positive comments made by Brexit secretary David Davis who suggested that the UK may try and maintain rights to the single market by offering to make payment to the EU even after we have left the European Union. These comments mean a soft Brexit is more likely than a hard Brexit and one of the key reasons for Sterling’s gains this week.

The Australian Dollar has also suffered owing to what is happens in the US economy at the moment as well. The US has continued to show strong signs of growth as well as positive unemployment data at its lowest level since 2007 released earlier today. The ongoing good news in the US is making an interest rate hike more and more likely when the US Federal Reserve meet on 14th December and if the Fed do decide to raise interest rates this could see a big sell off for the Australian Dollar resulting in GBPAUD exchange rates going in an upwards direction.

On Sunday the Italians will be holding a referendum on constitutional reform and Prime Minister Matteo Renzi has threatened to resign if the votes don’t go his way which could lead to Euro weakness which could in turn strengthen the Pound against all major currencies including against the Australian Dollar.

However, the UK government will be going to the Supreme Court next week to try and overrule the previous High Court ruling which argued that the UK government will need parliamentary approval to trigger Article 50.

Therefore, if you’re looking to buy or sell Australian Dollars next week could be rather volatile for the GBPAUD pairing.

Having worked in the currency markets since 2003 I am confident of being able to offer you better exchange rates than using your own bank and also being able to help you with the timing of your transfer.

If you have a currency transfer to make and want to save money on exchange rates then contact me directly for a free quote and I look forward to hearing from you.

Tom Holian teh@currencies.co.uk

 

 

GBP AUD Breaks 1.70 Before Retreating (James Lovick)

The pound has rocketed against all of the major currencies including the Australian dollar today breaking over 1.70 for GBP AUD before retreating in afternoon trade.

Sterling exchange rates have a had a good week following strong mortgage approvals data earlier on Tuesday highlighting a buoyant housing market which is a key feature of the British economy and is usually one of the first areas to struggle in uncertain times.

The strong mortgage approvals from the Bank of England give some reassurances to the market that the UK economy is still performing well in the aftermath of the vote to leave the EU.

The lift today for sterling exchange rates appears to have come from comments from Brexit Secretary David Davis who suggested that he was open to paying into an EU budget to maintain access to the single market. This represents a so called soft Brexit which is perceived as better for the pound and the markets took this news well.

Events Next Week – GBP AUD

Clients needing to buy Australian dollars should be aware of two major events taking place imminently. The first is the Italian referendum on constitutional reform this Sunday. A no vote could work in the pounds favour in this instance.

The second event is the Supreme Court ruling on whether UK Prime Minister Theresa May must consult Parliament to push through Article 50. Should Theresa May lose the appeal then the pound is likely to gain across all of the major currencies as the process of Brexit will be frustrated and potentially delayed.

A win by Theresa May would mean a tougher Brexit more likely which could see the pound weaken.

If you have an upcoming currency requirement either buying or selling Australian dollars and would like to be kept up to date with all the latest market movements, 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 James. Alternatively, I can be emailed directly on jll@currencies.co.uk

The Pound’s recovery continues, but will trade levels above 1.70 become available this month? (Joseph Wright)

The Pound to Australian Dollar exchange rate improved by roughly around 10 cents through November, making a substantial Sterling to Aussie Dollar transfer considerably more attractive.

The gains have been unexpected as most analysts have been suggesting the Pound is likely to decline as we approach the end of 2016 and enter the new year, especially as the ‘Brexit’ process is expected to begin in the early months of next year.

Donald Trumps unexpected victory in the US presidential election has boosted sentiment towards the UK economy due to his interests here and warm words over the past year, and the Brexit process may be delayed due to a High Court ruling meaning that the Brexit process cannot officially begin without parliamentary approval.

Both key events occurred through November and have resulted in a boost to Sterling’s value. The Aussie Dollar is also coming under pressure as the likelihood of a US interest rate hike by the Fed Reserve is looking very likely which could weigh on the Aussie Dollars value.

As a specialist currency exchange brokerage we’re able to offer our clients exchange rates that are much closer to the inter-bank rate than the typical high street bank, therefore through us you wouldn’t need the GBP/AUD inter-bank level to move much higher than 1.70 before you can actually trade at that level.

We also offer a number of different options, for example we can place automatic orders into our systems which can help our clients achieve their target exchange rates without having to stare at the screen all day.

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.

 

US Interest Rate becoming more likely causing Australian Dollar Weakness vs Sterling (Tom Holian)

Sterling vs the Australian Dollar has hit recent highs during today’s trading session as US economic data came out much better than expected.

We are now just two weeks away from the US interest rate decision and as the economic data has been very positive recently this has led to an increased chance that the US will raise interest rates. US non-farm payroll data is due out on Friday and if the data is positive once again this could be the catalyst to send GBPAUD rates in an upwards direction.

The impact this has on GBPAUD exchange rates is a positive one as it means that global investors are less likely to hold the riskier AUD and plough into the USD which results in Australian Dollar weakness.

The Pound has made huge gains vs the Australian Dollar and the next target for anyone looking to buy Australian Dollars could be 1.70.

If you’re in the process of selling Australian Dollars to buy Sterling but do not yet have funds available it may be worth looking at buying a forward contract which allows you to fix an exchange rate for a future date.

The one sticking point for Sterling though is the ongoing uncertainty surrounding the Brexit talks and the Article 50 issue and until we have some form of resolution we could see a bit of a rollercoaster for the Pound.

Having worked in the foreign exchange industry since 2003 I am confident of not only offering you better exchange rates than using your bank but also help you with the timing of you purchase of funds.

If you have a currency transfer to make and want to save money on exchange rates when buying or selling Australian Dollars compared to using your own bank then contact me directly for a free quote.

Tom Holian teh@currencies.co.uk

 

 

OPEC Meeting could swing Australian Dollar value (Daniel johnson)

Australian Dollar Outlook

Today the Organisation of the Petroleum Exporting Countries (OPEC) will meet. There has been a push in recent times by the member states  to limit oil production to force oil prices higher, over supply has been a large problem for a considerable time. It has taken long and tough negotiations to get to this stage.

Australia is a commodity based currency and can be influenced heavily by oil price. Any rise in oil value should see Australian Dollar strength. The oil price has been rising in anticipation that a deal will come to fruition in Vienna. The main concern for a breakdown is negotiations is Iran and Iraq agreeing to limit production and sticking to it, there has been problems in the past. We will hear news of proceedings at the 4pm press conference.

I would also keep a close eye on trade negotiations between the US and China. Australia is heavily reliant on raw material export to China. Trump has stated his attention to substantially limit trade with China. This has the potential to write trillions off both country’s GDP. If the world’s two largest economies are at logger heads it could have serious implications for the Australian Dollar.

If  you have a currency trade to perform it is vital to be in touch with an experienced broker. The timing of your trade can be crucial during such volatile  times, If you have an experienced broker on board he/she can keep you up to date with what is happening in the market to help you make an informed decision.  I will be happy to help you personally. If you inform me of the the currency pair you are trading, volume and time scale and I will provide a free trading strategy to suit your needs. I work for one of the top brokerages in the country, foreign currency Direct PLC and as such I am in a position to better virtually every competitors rate of exchange. You would also be looking at saving anything up to 4% in comparison to high street banks. Please do get in touch by contacting me at dcj@currencies.co.uk. Thank you for reading my blog.

Further volitlity expected for GBPAUD exchange rates

News broke yesterday that UK remain lawyers have found another loop hole that they are going to try to explore. Theresa May wants to invoke Article50 in March and will argue her case in the Supreme Court earlier December. However UK lawyers are now exclaiming regardless of the result the UK also need to trigger Article 127 alongside Article 50 if the UK want to leave the single market.

I am not surprised that the closer we get to the turn of the year, barriers are forming in front of Theresa May and I wouldn’t be surprised to see Brexit negotiations continue way into 2017. If pro ‘remainers’ manage to keep the UK in the signal market throughout 2017 exchange rates could improve towards the 2 level that we became accustom to in 2015. However if Mrs May gets her way a fall to the low 1.50s is on the cards.

Data releases that will have an impact on GBPAUD exchange rates tomorrow are:

  • AUD Private sector Credit 00:30
  • AUD Building Permits 00:30
  • GBP Financial stability report 10:30

If you are trading Australian dollars in the next 6 months I would strongly recommend getting in contact to discuss your situation. The company I work offers a proactive service to offering economic information whilst having the ability to offer award winning exchange rates. Feel free to email me with your requirements along with the timescales you are working to and I will respond with my forecast and the process of using our company. My direct email address is drl@currencies.co.uk.

GBP/AUD Rates Fall During Monday’s Trading (Matthew Vassallo)

GBP/AUD rates have fallen during Monday’s trading, with the pair falling back below 1.66 at today’s low. The Pound has performed well of late, making again against all the major currencies, including the AUD.

The reason the Pound has prospered is due to a number of factors. Donald Trump’s now infamous election victory boosted the hope of a trade deal between the UK and the US, news which immediately brought back some investor confidence back to the UK, despite our impending Brexit. This positive feeling was solidified by a strong run of economic data, in particular last week’s UK Retail Sales figures, which came in well above market expectation. This is key as any figure release outside of the expected remit, is always likely to drive the market and increase volatility on exchange rates.

Finally, we had the Autumn budget and UK Chancellor Philip Hammond sent out mixed messages but with the initial focus on additional housing and digital infrastructure, the Pound continued its run, putting pressure on 1.70. This run came to an end at the back end of last week and retracted further today as investors started to focus on the negative aspects of last week’s budget, including a predicted 122bn debt in the period running until 2020.

This reaction has in turn boosted the AUD’s value and it is likely it will now find support under 1.70 on the exchange. The AUD has benefitted itself from an upturn in economic conditions in Australia and as such, the AUD has found sustainable market support against the Pound over recent months.

Personally, I would not risk gambling on the current market, with economic conditions in the UK on a knife edge and huge scope for AUD weakness when you consider the recent history on the pair.

Looking ahead and this week we have the Bank of England’s (BoE) Financial Stability Report on Wednesday, which will give us a key insight into the current health of the UK economy. Thursday we have UK PMI Manufacturing data, which came out below market expectation last month and overnight we then have the latest Australian Retail Sales figures, which will be monitored closley by investors.

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

Why is the United States having a major impact on the Australian Dollar? (Dayle Littlejohn)

In recent weeks  the Australian dollar has been losing value and has now dropped to a 5 month low against the US dollar because of the appointment of Donald Trump as President-Elect.

Mr Trumps outbursts about China and future trade agreements puts pressure on commodity currencies that heavily rely on the 2nd largest economy.  Furthermore China’s last round of stimulus is coming to an end therefore a slowdown is expected for China and therefore the Australian dollar. If this is the case I expect commodity prices to fall.

Next month the US will release their latest interest rate decision and its widely expected that the FED will raise interest rates. If this is the case I expect to see a sell off of Australian dollar to buy US dollars and consequently AUDUSD will break through 5 month lows.

GBPAUD forecast

In recent weeks GBPAUD has increased 10 cents. With the US likely to hike interest rates and a slow down in China I believe the Australian dollar will continue to fall against sterling. For Australian dollar buyers there is a good chance exchange rates will continue to improve for the remainder of the year.

However  Brexit negotiations and the Supreme court ruling early next year will put pressure on the pound and then we could see a reverse in exchange rates. For Australian dollar buyers within the next 6 months I would recommend trading this year and banking the Australian dollars now.

If you do not have all of your sterling available you can lock into exchange rates now and pay later by using a small deposit. This is known as a forward contract.

If you are trading Australian dollars in the next 6 months I would strongly recommend getting in contact to discuss your situation. The company I work offers a proactive service to offering economic information whilst having the ability to offer award winning exchange rates. Feel free to email me with your requirements along with the timescales you are working to and I will respond with my forecast and the process of using our company.

My direct email address is drl@currencies.co.uk and I will personally respond once I am back at my desk Monday morning. Enjoy the rest of your weekend and I look forward to speaking with you soon.

Will Sterling continue to rise against the Australian Dollar? (Tom Holian)

The Pound has seen huge gains vs the Australian Dollar after hitting a 3 year low only last month. Sterling has gained by over 6% against the Australian Dollar over AUD18,000 on a currency transfer of £200,000 during this time.

The Australian Dollar has weakened against Sterling since the US election and combined with the delay for Article 50 caused by the High Court ruling recently this has helped the Pound make significant gains in such a short pace of time.

The Australian Dollar is heavily influenced by what happens with the Chinese economy as they are their biggest trading partner and with Trump having threatened to increase tariffs on Chinese goods and services entering the US this is another reason for the Aussie Dollar falling vs Sterling.

Commodity prices have also seen some volatility and if prices fall then this often leads to a weakening for the Australian Dollar.

Business investment in Australia has really started to dwindle recently and the amount of money has dropped by AUD$75 billion in the last 3 years alone.

The Australian Dollar is also affected by what happens in the US economy and with the US potentially raising interest rates on 14th December this could mean investors selling off Australian Dollars in favour of the US Dollar which could lead to GBPAUD exchange rates going in an upwards direction.

Having worked in the foreign exchange markets since 2003 for one of the UK’s leading currency brokers I am confident of being able to offer you bank beating exchange rates as well as helping you with the timing of your transfer of funds whether buying or selling Australian Dollars.

If you have a currency transfer to make and would like to save money on exchange rates compared to using your own bank then contact me directly for a free quote and I look forward to hearing from you.

Tom Holian teh@currencies.co.uk