Daily Archives: June 13, 2017

US Interest Rate decision key for GBPAUD currency exchanges!

The Federal Reserve bank in the United States will unleash their latest Interest Rate decision  tomorrow evening at 7pm UK time. The pound to Australian dollar exchange rate is looking precarious as we approach this latest news, but also news from the Bank of England this week. Overall I would not be surprised to see the Australian dollar weaker as the market finds that betting on the US dollar’s ascendancy is much more interesting than backing the Australian dollar.

The Australian dollar is holding one of the higher interest rates of the leading global economies at 1.5%, with a hike in the US bringing them to just 0.25% below, the expectation is that the Australian dollar will be sold off as investors adjust their positions to reflect more of a holding of the US dollar, believing the US dollar will rise further in the future.

If you have a transfer buying Australian dollars in the future Thursday might see some better rates but should the Fed decide to hold off raising rates, we could see the US dollar weaken which would see the Aussie gain strength. The Aussie could also find favour against a weaker pound which is having a very tough week following the unexpected outcome from the UK election.

Should you be considering buying or selling Australian dollars in the future current evens are very important, Aussie buyers will I am sure be very keen to try and get above the magic 1.70 mark again although of course they could easily find themselves getting worse should events take an unexpected turn as they can!

For more information at no cost or obligation please speak to me Jonathan Watson by emailing jmw@currencies.co.uk. Thank you for reading and I look forward to hearing from you!

Will the pound continue to fall against the Australian dollar (Dayle Littlejohn)

In the run up to the UK general election GBPAUD exchange rates remained buoyant around the mid 1.70s which was a surprise to the traders here as the pound was falling across the board against all of the major currencies. I put it down to the Australian dollar weakening due to iron prices and the slow down in China.

Once the general election exit polls were released the pound started to tumble against the Australian dollar and rates continued to fall once it was announced that Theresa May had not won an outright majority. GBPAUD exchange rates have dropped 8 cents since the election result which means if clients are converting 400,000 Australian dollars back to sterling they will receive an additional £10,800.

Looking further ahead I find it difficult to see how the pound will gain any momentum until a government has been formed. At present UK Prime Minister Theresa May is trying to form a minority government with the DUP. Many have questioned the alliance as some of the DUP policies and views seem controversial and not supported by the Conservatives.

Personally I believe a government will be formed in the upcoming days which could provide some stability for the pound. Thereafter Theresa May will turn her attention to Brexit negoations and with the election result a softer Brexit looks more likely which actually improve the pounds value as remaining a part of the single market could actually occur.

For Australian dollars sellers buying sterling, it appears China are going to continue to slow and economists are predicting iron ore prices will follow which will have a negative impact on the Australian dollar. The spike we have seen over the last 5 days may be worth taking advantage of.

If you are trading GBPAUD in the upcoming weeks, months or years and want to save money 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! **