Daily Archives: June 7, 2017

Pound to Aussie Dollar hits its lowest level since April as the election approaches, will the trend continue? (Joseph Wright)

The Aussie Dollar bucked the trend today and actually gained value vs the Pound during today’s trading session.

As the election polls have swung back in favour of a Conservative majority the Pound has received a boost against most currencies, as the tightening in the polls over the past few weeks has put pressure upon the Pound as is often the case during times of political uncertainty.

The Aussie Dollar managed to buck the trend as in the early hours of this morning as both quarter-on-quarter as well as year-on-year economic growth figures (GDP) came out better than expected. This data release now means that Australia has recorded 103 successive quarters of growth which is a new global record, making the Aussie Dollar strength understandable.

Despite these figures from down under I am expecting to see the Pound climb further across the board of major currency pairs (including AUD) should the Conservative party win a majority when the election result is announced this Friday.

Another potential downside to the Aussie Dollar is the likelihood of another interest rate hike in the US which would limit demand for investors to hold funds in AUD. AUD has benefited from having such a high interest rate for a nation within the developed world, and should other nations, especially those considered less high risk such as the US, begin offering a similar or higher rate we could see a sell-off in the Aussies value due to selling pressures.

If you have a large currency exchange to carry out in the coming days, weeks or months then you are more than welcome to speak with me directly as I will be more than happy to help you both with trying to time a transaction and getting you the top market rate when you do come to buy your currency. A small improvement in a rate of exchange can make a huge difference so for the sake of taking two minutes to email me you may find you save yourself hundreds if not thousands of Pounds. You can email me (Joseph Wright) on jxw@currencies.co.uk and I will endeavour to get back to you as soon as I can.

 

Australian GDP provides strength for the Australian dollar (Dayle Littlejohn)

In the early hours of this morning Australia released their latest GDP numbers. As expected yearly and quarterly figures fell from previous figures however the numbers exceeded expectation. Yearly figures were released at 1.7% up 0.2%, and quarterly figures were released at 0.3, 0.1% higher than the consensus.

The Australian dollar has strengthened off the back of the next and GBPAUD exchange rates have dropped 0.65% and therefore 1 1/4 cents. To put this into monetary terms, for Australian dollars sellers buying £200,000 will now save themselves 2,500 dollars.

It’s a busy week for GBPAUD exchange rates as the UK General election is on the horizon. Theresa May and Jeremy Corbyn are still touring the country trying to sway the undecided voter. In recent days security has been a major talking point and Jeremy Corbyn has been on the attack insisting Theresa May should resign as the Conservative parties police cuts have made the streets of the UK less safe.

Theresa May has hit back stating that the police are well resources however she has also stated that she will change human rights laws in a bid to crack down on terrorism.

Towards the end of the week I am expecting major volatility for sterling vs Australian dollar exchange rates. If Theresa May wins a majority I expect the pound to make inroads against the Australian dollar and rates to increase back towards the mid 1.70s and beyond. However any other result I believe GBPAUD will fall back towards the mid 1.60s.

If you are converting sterling and Australian dollars short term, you need to make a decision now. The currency company I work for saves clients money on their currency conversions whilst offering up to date market information which helps the client make informed decisions. Therefore if you have an upcoming currency requirement and would like to save money feel free to email me directly on drl@currencies.co.uk. Alternatively if you would like to discuss your requirements over the phone call 01494-787478 and ask to be put through to Dayle Littlejohn.

** 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 a few minutes and in the past I have saved clients thousands! **