GBP AUD Breaks over 1.70 again in Christmas Run Up (James Lovick)

GBP AUD exchange rates are back over 1.70 for this pair although rates are struggling to climb much higher with some resistance at these higher levels. UK Gross Domestic Product (GDP) figures are released on Friday morning and could make for an interesting end to the week just before Christmas.

Expectation for GDP is for a figure of 0.5% on the quarter and 2.3% on the year. GDP has been extremely resilient following the British referendum to leave the European Union 23rd June 2016. We are now some 6 months on and to date not that much has changed which is one of the reasons the pound has seen a boost over the last 6 weeks.

Next year will be hugely interesting though not just to see the impact on the price of sterling by political developments but also to see how the Aussie dollar performs.

The Australian dollar looks set for an extremely volatile 2017. There is talk that Australia may see a credit rating downgrade from Standard & Poor, one of the major credit rating agencies. Government budget deficits expected to occur next year are also likely to put pressure on the dollar. There could be some better opportunities to buy Australian dollars next year on a weaker Australian economy.

The direction and policies of Donald Trump towards world trade will also have a direct impact on the Aussie and this element should be seriously considered. Any slowdown in China could see a knock on effect of Australian dollar weakness in the New Year.

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

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