Daily Archives: January 25, 2017

GBP/AUD rates boosted from Supreme Court decision (Joshua Privett)

The results from the long awaited Supreme Court Decision in the UK has seen Australian Dollar buyers as the biggest winners on the exchange rates, with GBP/AUD climbing over two cents between the high and the low of the day.

So after such a highly anticipated event, what next?

We now have the framework established for the Brexit negotiations moving forward. The improvement in Sterling was the result of increased confidence in the currency markets to invest in the Pound. With Parliament likely delaying proceedings, and reigning in any extreme measures which a Government could do if it was acting alone, confidence to buy the Pound with the ability to sell before being caught by any chock surprises is much higher.

Essentially markets are now less nervousness than the first 6 months following the Referendum, where multiple dates recorded heavy falls on GBP/AUD exchange rates.

The deciding factor for the value of the Pound moving forward will be how well Theresa May works with her Parliament, and the degree of independence in her decision making – we will get an idea of this in the coming week.

We can expect strong arguments over access to the single market following the tone on PMQ’s today, so AUD buyers should be wary that sudden falls on GBP/AUD may occur as this market is still very reactive to such rhetoric. The last time Theresa May conducted an interview, GBP/AUD was actually one of the largest losers, falling by 2.4% in a single day.

With the risk there and a much better rate to purchase on the table, there is a very strong argument for anyone planning a foreign currency transfer into Australian Dollars to move sooner rather than later to secure these gains. This was the major positive news for the Pound this month. Now it is simply a rocky road towards Article 50.

It goes without saying that Australian Dollar sellers looking to buy Sterling are not facing the same rush, and opportunities are expected to present themselves in the short and medium term as we edge closer to Article 50.

If you are planning to make a currency exchange involving the Pound and another foreign currency, it’s well worth your time getting in contact with me on jjp@currencies.co.uk overnight whilst markets are quiet 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.

Supreme Court Ruling does little to move GBP/AUD (Daniel Johnson)

Supreme Court Ruling could hinder May’s Brexit plans

Yesterday saw the release for the supreme court judgement on whether parliament will vote on the triggering of article 50. It was very difficult to predict which way the market would move when the result came through. Theresa May’s speech recently made it clear her intention was for a hard brexit, which could be seen as detrimental to the UK economy and many would expect Sterling to suffer against the Australian Dollar as a result.

Sterling actually strengthened against the majority of major currencies following the release of her plans for Brexit. The markets do not react well to uncertainty, with May’s announcement it proves that bad news is better than no news.  The supreme court ruling has now given parliament the right to vote on the exit bill, the big question is whether May’s plans to leave the single market and the customs union will be approved. Labour are sure to try and throw a spanner in the works. It seems the ruling has created more unanswered questions and that is why we have yet to see a significant rally by the pound. There is sure to be volatility over the coming months.

Interest Rate Hikes in the US could cause the Australian Dollar to suffer

The Federal Reserve increased interest rates in December and forward guidance has indicated there could be as many as three more in 2017. This has caused the Australian Dollar to become less attractive to investors. With higher levels of return than previously in the US and the fact that the US Dollar is now considered a safe haven it would not surprise me to see many investors moving toward the US dollar as apposed to the Australian Dollar. This could be even more significant if Australia lose it’s AAA rating.

If you have a currency requirement I will be happy to assist. I specialise in property and I can ensure the whole money transfer process runs efficiently,smoothly and is cost efficient. I can provide an individual trading strategy to suit your needs and I also have access to the best rates of exchange available. I work for Foreign Currency Direct PLC, you can trade in confidence knowing we have been doing this for more than sixteen years. If you would like my free assistance I can be contacted at dcj@currencies.co.uk.

Daniel Johnson