Daily Archives: June 20, 2017

Volatility expected on GBP/AUD in the next 24hrs as government announcment expected (Daniel Johnson)

Queens Speech has potential to cause movement on GBP/AUD

Tomorrow we will see the state opening of parliament and the queens speech which had been delayed as the conservatives and the DUP thrash out a deal. The UK is currently in political limbo at present and this has been very detrimental to the pound, if we go by what is taught in economics class you would expect the pound to rally once there is a government in place. It is common knowledge that we will see a conservative-DUP  coalition and the market will have largely factored this into the current GBP/AUD rate.  What I think will have more bearing is what plans the coalition have for the country particularly regarding the brexit strategy. A change from Theresa May’s hard brexit plan could well occur, as the DUP would favour a soft border between Northern Ireland and Ireland, this would mean a move away from May’s plans of border control and a hard brexit. It is important to also note that senior members of the conservatives have threatened to challenge May’s leadership if she changes her plans on  a hard exit. If you have a currency trade to perform involving GBP/AUD you need to be in touch with an experienced broker if you want to take full advantage of short term spikes. There are a number of options to ensure any tempting peaks which emerge are not missed and if you would like me to help, be sure to get in touch in quickly so I am aware of your situation and can assist in maximising your return. My details are at the bottom of the article.

 

RBA Minutes gives an indication of what could influence future Australian Dollar value

The Reserve Bank of Australia (RBA) minutes  take place two weeks after the interest rate decision. They provide an account of policy discussion and also how the committee voted. This can give a real indication of what monetary policy changes can be made in the future and can influence GBP/AUD.

The minutes took place during the early hours of this morning and is was much the same as the previous meeting, interest rates were kept on hold at 1.50%. Housing and employment will be key factors in interest rate judgement as detailed in the minutes.

Data will continue to hit the wire throughout the month regarding these key indicator, affecting the value of the Australian Dollar consistently. Feel free to get in touch if you would like me to keep an eye on these releases for you, I can contact you if an opportunity presents itself.

Should you find our information useful and you would like me to assist with your trade I will be happy to help you personally. If you inform me of the details of your trade I will endeavour to provide a free trading strategy tailored to your situation. We are authorized by the Financial Conduct Authority so you can trade with safety and confidence. Our reputation at Foreign Currency Direct is impeccable, we also offer the most competitive rates of exchange and if you have a current provider I am willing to perform a comparison and I am very confident I can demonstrate a significant saving. I look forward to being of help. I can be contacted at dcj@currencies.co.uk. (Daniel Johnson)

GBP AUD Lower Ahead of Queens Speech (James Lovick)

GBP AUD exchange rates remain on the back foot after that UK snap general election created political uncertainty in Britain and which continues to weigh on the price of sterling. The Queens speech on Wednesday is the big event of the week in Britain and high volatility is to be expected. Any political attacks or attempts to vote down the Queens speech by Labour leader Jeremy Corbyn could see the pound weaken further against the Australian dollar.

As things stand no agreement has been made between the Democratic Unionist Party (DUP) and the conservative government so there could be fireworks tomorrow at the Queens speech. However if all goes smoothly at the opening of new parliament then GBP AUD could see a rally back toward 1.70. This may not come tomorrow but once there is an understanding of how the conservative government will be running with the support of the DUP then it should lend support to the pound.

Selling Australian Dollars

Clients looking to sell Australian dollars would be wise to consider taking advantage of the recent dip in the price of sterling as some economic indicators down under are starting to look wobbly. The Australian housing market in particular is being closely watched and concerns have been raised. The combination of booming house prices and rising household debt has even caused Moody’s to cut its ratings on some of Australia’s banks on these concerns.

The Reserve Bank of Australia’s minutes released this morning document this view on the housing market and there could be more developments in the coming weeks and months. Clients looking to buy Australian dollars could see some better opportunities if there is a turn in the sector.

If you would like further information on Australian dollar exchange rates or any of the major currencies and to discuss how we can assist then please feel free to contact me on 0044 1494 787 478 and ask one of the team for James. Alternatively, I can be emailed directly on jll@currencies.co.uk