Daily Archives: June 8, 2017

Will the Tories win and what could happen to Pound vs Australian Dollar exchange rates? (Tom Holian)

We are now just a few hours away from the result of the latest general election and at the time of writing it looks as though the Tories will clinch victory.

At the moment the markets are relatively quiet in anticipation as to what may happen overnight. It is not yet clear what time we should expect the vote but we are likely to see volatility for GBPAUD exchange rates overnight.

My suspicion is that we will see a Tory victory but if the voting is close or if we even have a hung parliament this could cause big problems for the Pound overnight.

However, a Tory victory is likely to provide the markets with some certainty for the next few years and this typically results in strength for the currency involved and in this case Sterling.

As we have seen during the course of 2016 with both the Brexit vote as well as the Trump victory the market can be full of surprises and the opinion polls can be dramatically wrong causing big movements on the foreign exchange markets.

One issue longer term is that even if we do see the Tories win with a majority the boost for the Pound may be short lived as it means that the Brexit negotiations will be allowed to begin and this is likely to be a very challenging period for both British political will as well as the British economy.

Having worked in the foreign exchange industry since 2003 I am confident not only of being able to offer you bank beating exchange rates when buying or selling Australian Dollars but also help you with the timing of your transfer.

If you have a currency transfer and would like further information or a free quote then contact me directly and I look forward to hearing from you.

Tom Holian teh@currencies.co.uk

 

Markets await news from the U.K elections – This will impact AUD/GBP exchange rates (Daniel Wright)

As we await news on just how the U.K election will pan out, Sterling has remained fairly flat against the Australian Dollar throughout trading today. It had looked like Sterling would be pushing up and above the 1.75 (0.5714) mark in the past week or so but what we have seen is a slight shift in momentum and the Labour party clawing back seats in the polls.

This has caused uncertainty for the Pound which has led to the Australian Dollar making back ground against it and coming down to test the 1.70 (0.5882) level.

It does appear that if you trust the bookies odds (which were totally wrong for the referendum) we will be seeing a conservative majority and that will more than likely lead to Sterling strength, but we must also bear in mind that this will also increase the likelihood of a harder brexit so the markets could actually see this the other way and push the Pound back down.

All in all we have a very interesting 24 hours ahead for anyone looking to buy Australian Dollars with Sterling or to send Australian Dollars back into Pounds, as we could face a lot of volatility and some fantastic trading opportunities in the hours ahead.

if you are in the position where you may need to make an exchange either in the imminent future or the coming weeks and months then it makes sense to have an experienced and proactive currency broker on your side.

I have been helping clients make large exchanges to and from Australia for nearly ten years now and make sure that not only do they get the very best exchange rate but they are also kept well aware of market movements in their favour or against them.

If you feel I would be of assistance to you then feel free to contact me (Daniel Wright) personally on djw@currencies.co.uk and I will be more than happy to get in touch and help you put together a plan of action for your exchange.