Daily Archives: December 1, 2016

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.