Daily Archives: January 9, 2017

GBPAUD hits 2 month lows, what next?

Sterling has dive bombed as Theresa May hints that a hard Brexit is more likely as she outlines to pursue control of law and immigration. It is notable she has stated the only mistake here are anyone who implies in advance what the PM is really seeking in negotations. So whilst this GBP weakness may turn out to be unfounded much longer term for now it seems likely to persist. GBPAUD rates could easily test 1.60 or maybe even lower.

It isn’t all bad news as there is a strong likelihood the pound will rise on the Supreme court judgement which is expected to confirm Theresa May will need to seek the approval of parliament before triggering Article 50. This should lead to sterling rising as it makes apparent the Government will not have a clear path to their goals. There are all manner of wider interests in the UK seeking to derail Theresa May’s plans and the passage through parliament will not be easy on any bills. The UK might even need another election to ‘debate’ Theresa May’s vision.

So all in all I expect the pound to remain lower against the Aussie as it makes apparent that the pound will be the driver. There has lately been lots of good news in the Australian economy with some forecasting the RBA might be forced to raise interest rates later in the year. For now the strength of the US dollar is acting as a big drag on both the the pound and Australian dollar which will present swings.

On the whole I expect this market to favour clients selling AUD for sterling and clients looking to buy Aussies with pounds need to be paying extra attention and making extra effort to avoid problems. If you wish for some assistance to monitor the exchange rates and pick the spikes then you are reading the right blog. I work as specialist currency broker helping and assisting  clients looking to buy and sell Australian dollars with the most up to date news and market insight. For more information at no cost or obligation please speak to me Jonathan Watson by emailing jmw@currencies.co.uk.

Thank you for reading, I hope you find this useful and I welcome any feedback on the post or enquiries on GBPAUD transfers.

Jonathan

What to expect this week for GBPAUD exchange rates (Dayle Littlejohn)

With limited Australian economic data last week and UK  data exceeding expectation you would have thought the pound would have continued its good run against the Australian dollar. However this was not the case as GBPAUD started the week at 1.7175 and is now fluctuating in the 1.66s.

The reason for the decline is the looming Supreme Court ruling. The Supreme Court judges are back to work on the 11th January from their Christmas festivities and they should announce whether UK Prime Minister needs the approval of Parliament before triggering Article 50.

This announcement links directly to either a ‘Hard’ or ‘Soft’ Brexit. If Mrs May has to seek Parliament approval then a softer Brexit becomes more likely and therefore the pound could begin to start making gains against the Australian dollar. Where as if she overturns the High Court decision and she can invoke Article 50 by March then further losses for the pound vs the Australian dollar are on the horizon.

Personally I wouldn’t be surprised to see the judges stick together and therefore a softer Brexit becomes more likely. However 2016 was the year of surprises, therefore getting in touch early and being in the position ready to convert currency is the way forward.

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! **