Daily Archives: August 30, 2017

Sterling Spikes During Wednesday’s Trading – GBP/AUD Forecast (Matthew Vassallo)

Sterling made some positive inroads against the AUD during Wednesday’s trading, bringing some respite for those clients holding the Pound.

GBP/AUD rates hit a high of 1.6369, gaining two cents at the high. Whilst the AUD is likely to find support under 1.65, it is at least reassuring that Sterling has been able to gain a foothold, especially when you consider how much negative press there has been around the UK economy of late.

Whilst the UK’s on-going Brexit talks continue to dominate headlines, with multiple reports of a disjointed so far unsuccessful approach handicapping any major advances for the Pound, the AUD has run into its own problems this week.

Despite the Australian economy performing admirably of late, there is a growing concern concerns that the potentially unsustainable property price housing bubble that is engulfing Sydney & Melbourne, could soon come to a head.

If interest rates are hiked, as floated by the Reserve Bank of Australia (RBA) in their recent minutes, this could have a detrimental effect on a large number of home owners in two of Australia’s most affluent cities. Whilst the RBA will be aware of the destabilization this could cause, some analysts are arguing that it may be unavoidable if inflation levels suddenly rise at a rapid rate.

Even more poignantly the current saga surrounding the US & North Korea could well be a catalyst for global investor risk appetite to shrink. This in turn could be bad news for the Australian economy and ultimately the AUD, which being a commodity based currency, is heavily reliant on global growth.

Therefore, any slowdown in this sector, in particular in the US economy, could lead to investors will then pull funds away from the riskier currencies such as the AUD and back into safer havens like the CHF or even USD.

This means that commodity currencies are open to larger swings than others and as such I would be looking to take advantage of the very attractive selling levels currently on offer and remove any market risk.

If you have an upcoming GBP or AUD currency transfer to make you can contact me directly on 01494 787 478. We can help guide you through this turbulent market and as a company we have over eighteen years’ experience, in helping our clients achieve the very best exchange rates on any given market.

Our award inning rates can be accessed very easily over the phone and I can keep you posted with key market developments ahead of any prospective exchange you need to make.

Feel free to email me directly on mtv@currencies.co.uk to find out all the options available to you ahead of your currency transfer.

Will Brexit uncertainties limit a Pound to Aussie Dollar recovery? (Joseph Wright)

The Pound to Aussie Dollar exchange rate is currently trading at the top end of its post-brexit vote lows at the moment, with it’s multi-month low sitting at 1.6171.

It has traded in the late 1.50’s since the vote so now is an important time as we’ll see whether the pair will fall below this mark and hit new brexit lows as the Euro has over the past week.

Under normal circumstances I would expect to see future Sterling gains against the Aussie Dollar due to the overheating housing market concerns, as well as the RBA’s reluctance to amend interest rates to counter this but due to fears surrounding the UK economy in future, I’m not expecting to see the Pound recover back to levels of 1.70 – 1.76 that we saw earlier this year.

Many current financial headlines are centered around the Brexit negotiations and how the European Commission is becoming frustrated with the UK’s lack of clarity regarding the exit strategy, with the UK not willing to show its hand until the Brexit Bill is confirmed.

If you would like to be kept updated regarding any short-term price movements involving the Pound and the Aussie Dollar, do feel free to get in touch with me and register your interest, as we’re able to keep clients informed.

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.