GBP/AUD exchange rate likely to be driven by US FED’s tone later today (Joseph Wright)

The GBP/AUD pair have remained range-bound for some time now, although there does appear to be a bias towards the downside as we’re seeing the Pound weaken on almost a daily basis at the moment.

With the Reserve Bank of Australia beginning to adopt a more bullish attitude the probability of another interest rate cut from them again this year has dropped down to 30% according to major bank Danske Bank. This coupled with the Bank of England’s likelihood of cutting rates once again in the UK is why I feel there is potential for further falls for GBP/AUD.

Aside from the UK’s and Australia’s own monetary policy plans, the GBP/AUD exchange rate’s direction is currently also being influenced by the US Fed Reserve Banks monetary policy plans.

It’s likely that when interest rates are increased in the US, the Pound will gain on the Aussie as at the moment the Australian Dollar has been benefiting as many investors worldwide wish to hold funds in AUD due to the high interest rates offered by Aussie banks.

Once rates increase in the US I’m expecting the Pound to gain value on the AUD, as deposits will likely switch from AUD to USD which will weaken the Aussie.

If you want to be kept up to date on the markets and you would also like to ensure that you are getting the very top levels of exchange for an imminent currency transfer or even a longer term one then I can help you with this.

Not only do we give clients up to date market information but we all work for one of the largest and longest serving currency brokerages in the U.K, so even if you have dealt with your current broker or bank for a long time I would be surprised if I could not show you a saving over what they are offering you – You can email me (Joseph Wright) directly on jxw@currencies.co.uk and I will be more than happy to contact you personally to discuss the various options we have available to you.

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