Daily Archives: June 21, 2017

GBPAUD exchange rates fall to a 8 week low! (Dayle Littlejohn)

Pound vs Australian dollar exchange rates have reached an 8 week low this week due to sterling devaluing and the Australian dollar strengthening. To put this into monetary terms over the last 2 weeks exchange rates have dropped 5 1/2 cents which means a 200,000 Australian dollar purchase is now £3,850 more expensive.

Starting with the Australian dollar GDP numbers have remained resilient this month, and positive business sales growth coupled with increased consumer spending has strengthened the Australian dollar. In addition the Philip Lowe (Governor of the Reserve Bank of Australia) also commented earlier in the week that the global economy is in better shape than previous years which is helping the commodity currencies. This was a surprise statement as iron ore prices continue to remain under pressure due to a slow down in China.

As for the pound the Governor of the Bank of England gave a dovish statement yesterday and confirmed the UK are not in the position to raise interest rates anytime soon even though three members of the Bank of England voted to hike rates only 6 days ago. Furthermore Brexit negotiations have begun and are putting pressure on sterling as the market is nervous about a deal being struck in regards to the divorce settlement.

In my opinion it is impossible to predict how Brexit negotiations will impact the pound. Positive news will strengthen the pound negative will do the opposite. I am optimistic that deal will be struck eventually however other traders on the floor are not. If you are purchasing pounds with Australian dollars or vice versa I would recommend getting in touch and I will keep you up to date with regular information until you are ready to convert drl@currencies.co.uk.

If you are buying or selling Australian dollars in the upcoming months and want to achieve rates of exchange that are better than your bank, whilst receiving regular economic information feel free to email me with the currency pair (AUDGBP, AUDEUR, AUDUSD) the reason for the transfer (company invoice, property purchase) the timescales you are working to and I will respond with my forecast and the process of converting currency. My direct email address is drl@currencies.co.uk and I look forward to receiving your email.

Sterling tumbles after Mark Carney Speech (Ben Fletcher)

The Governor of the Bank of England Mark Carney yesterday delivered a speech saying that he doesn’t think an interest rate hike is imminently on the cards. The comments followed a vote by the economic monetary policy committee last week where the members voted 3-5. 8 members voted for the decision and this is the first time in over 5 years 3 members have voted for a hike. The vote last week caused a jump in the market however that was lost yesterday.

The comments yesterday had an instant effect on the market causing nearly a 1% drop in the GBP/AUD rate. Since the final weeks of the UK election and the subsequent hung Parliament result the Aussie has gained nearly 10 cents in strength against sterling, moving the rate to 1.66. In my opinion I don’t see the rate returning to the 1.60 level last seen in March and any Aussie Dollar sellers should consider capitalising on the last two weeks movements.

Where Next for GBP/AUD?

Now that the Brexit negotiations have started there is potential for the markets to move at an instant. David Davis the UK’s Brexit Minister suggested the talks got off to a positive start and that he was hopeful of much of the same in a press conference earlier this week. The main market influencer will be the announcement of a trade deal between the UK and the EU, the moment that comes Sterling’s fortunes could change.

If you’re interested in finding more information about the markets I am able to assist by keeping you up to date with any market. I work for a company that has been in business for 18 years and would be surprised if I am not able to help you make a significant saving on your currency transfers. If you would like to ask any questions please send Ben Fletcher an email at brf@currencies.co.uk.