Monthly Archives: October 2017

GBP AUD Breaks over 1.73 ahead of Bank of England Meeting (James Lovick)

GBP AUD exchange rates have seen an excellent boost with rates breaking over 1.73 for this pair today. There is currently an excellent opportunity for those clients looking to buy Australian dollars as present. The Australian dollar has come under pressure in recent weeks following the very dovish set of minutes from the Reserve Bank of Australia (RBA).

It is now very unlikely that there will be an interest rate increase any time soon. The earliest rate increase is likely to be some time at the end of 2018 or possibly even into 2019 which is helping see the Aussie weaken. Despite the strength of the Australian economy and bearing in mind that it has been over 25 years since the last recession down under the Australian dollar is seeing some weakness at present and this stems from the tone coming out of the RBA. It is well known that the RBA has raised concerns over the recent strength of the Aussie and has openly made clear its view that it would like to see the currency weaken and this appears to be filtering through into the exchange rate.

As far as GBP AUD is concerned the pound has also received a boost in the last week. The stronger Gross Domestic Product (GDP) numbers have helped lift sterling in what has been a very uncertain 16 months following the Brexit vote in June 2016. The Bank of England meet on Thursday and there is a strong chance that there will be a hike by 0.25% taking levels back up to 0.5%. Clients looking to buy Australian dollars with sterling may wish to consider locking in at the current better levels. There is a risk that if the central bank does not rise rates on Thursday then the pound could fall lower.

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

AUD Forecast – Sterling Spikes Ahead of BoE Interest Rate Decision (Matthew Vassallo)

GBP/AUD moved back through 1.72, with the Pound finding support ahead of Thursday’s Bank of England (BoE) interest rate decision.

Many clients will now be questioning their next move but personally it may be wise to consider any upcoming Sterling exchange ahead of Thursday’s decision.

I believe a small rise in interest rates (up to 0.25%) has already been factored into GBP/AUD current value and whilst you may see a small upturn should the aforementioned hike occur, it is unlikely to be overly aggressive.

I feel that whilst market perception around the UK economy remains minimal, any rises in the Pound’s value, however marginal, should be considered a positive and clients holding Sterling need to consider their position accordingly.

Looking at the Australian economy and a report yesterday made for interesting reading. It is now over 25 years since they faced a recession, the longest run in any developed nation.

Whilst many others have faltered, Australia seems to have weathered the storm but could things be about to change?

The UK economy as we well know is facing a long road to recovery, as we try to navigate our separation from our EU neighbours and despite some support for the Pound of late, the UK is without doubt fighting an uphill struggle as it tries to adapt to its new surroundings.

The Pound has lost value against the AUD for much of this year, with GBP/AUD rates hitting 1.64 only a few months ago, before its upturn back to the current levels.

The Australian economy on the other hand has continued to perform relatively well but those clients holding AUD need to remain cautious, as a senior economist admitted in the report, they “have been riding their luck to some extent”.

Australia’s economic prosperity is for the most part driven by the export of their vast supply of raw materials. This is mainly iron ore and liquified gasses, which are then shipped to China their main trading partners.

They have also benefited from a booming property industry, driven by low interest and easy credit. A high influx of immigration has also helped to drive their economy forward, whilst others have faltered and this has all combined to help support headline growth.

However, looking more closely and these factors have helped mask other economic short-comings, in particular a flagging Manufacturing & Production industry. This was once the envy of other nations but aging, high-cost infrastructure has slowed these sectors dramatically.

If these economic problems were to manifest themselves, then the current value against Sterling could look extremely attractive in the future and as many are predicting, the bubble must burst at some point.

Brexit negotiations remain stagnated and this is helping to inadvertently boost the AUD’s value but were they to take an upward trajectory, the Pound could fine support and a move back towards 1.75 is certainly not out of the question.

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 the Bank of England hike rates on Thursday and the impact on the Pound vs the Australian Dollar? (Tom Holian)

The Pound vs the Australian Dollar has continued to remain very strong having broken past the resistance level of 1.70 and targeting 1.72 during today’s trading session creating some excellent opportunities for anyone looking to buy Australian Dollars with Pounds.

With the uncertainty surrounding what is happening in Catalonia the Pound has seen the benefit of a Euro sell off in favour of Sterling and this in turn has boosted GBPAUD exchange rates.

With the Bank of England also due to meet on Thursday the current polls have got an 84% chance of a rate hike occurring on Thursday and this is another reason for Sterling strength vs the Australian Dollar.

Thursday could be the biggest day of the week in terms of what happens between the Pound and the Australian Dollar owing to the economic announcements due out.

We begin Thursday with the release of both Australian Import and Export data as well as Trade Balance figures and as this comes out in the early morning it may be worth considering a Limit Order which allows you to buy at a pre-agreed exchange rate even outside of usual UK working hours.

At midday on Thursday the Bank of England will announce their latest interest rate decision and the chances are very high that we’ll see the first rate hike on Thursday so make sure you’re prepared for a busy day if you’re buying or selling Australian Dollars.

If you have a 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 (Tom Holian) on teh@currencies.co.uk and I will endeavour to get back to you as I can.

Should I trade my Australian dollars into sterling now? (Dayle Littlejohn)

For people that are emigrating to the UK at some stage you will need to convert Australian dollars into Sterling and thats where I come in. The currency company that I work for undercuts banks exchange rates which means you will have more sterling for when you arrive on UK shores.

Since the Brexit vote rates for selling Australian dollars to buy sterling have been fantastic however in recent weeks the pound has been recovering against the Australian dollar due to the devaluation of the Australian dollar and the strengthening of sterling.

Australian inflation fell last week, which confirms the Reserve Bank of Australia’s commentary that an interest rate is completely off the cards. UK inflation has been on the rise for many months due to the weaker pound and it’s likely that the Bank of England will raise interest rates this Thursday which means GBPAUD could push towards the mid 1.70s.

The key economic event that will continue to drive GBPAUD exchange rates is the Brexit negotiations. The UK and EU negotiators have made it clear that decisions need to be made in the upcoming months, and UK Prime Minster Theresa May confirmed last week that both parties are close to securing the EU citizens rights deal. This is so important for sterling exchange rates as a deal will mean stage 2 negotiations can begin.

For people that need to convert Australian dollars into pounds, you are still receiving something I call ‘the Brexit discount’. In the upcoming months I expect the pound to continue making inroads against the Australian dollar therefore converting sooner rather than later would be my strategy.

If you are buying or selling Australian dollar in the upcoming weeks, months or years 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! **

Pound hits 4 month high vs the Australian Dollar (Tom Holian)

The Pound has hit the best rate to buy Australian Dollars since June following a number of positive announcements during the course of the week.

Sterling has found some support against all major currencies towards the end of last week after some positive feedback from the talks in Europe. However, since Wednesday GBPAUD exchange rates managed to break through 1.60 on the Interbank level and have remained above this level at the time of writing and I think we could see further gains ahead for the Pound.

The first estimate of UK GDP figures for the third quarter showed much higher than expected numbers at 0.4% compared to 0.3% and this saw the Pound increase dramatically.

Part of the reason for such strength is that with the economy looking very positive this means that the Bank of England are becoming more and more likely to hike interest rates at next week’s meeting.

Potentially this could help the Pound make further gains vs all major currencies if this takes place.

However, one risk is that although the likelihood is as high as 84% chance of a rate hike if it doesn’t take place we could see some dramatic losses for the Pound vs the Australian Dollar so in effect there is a risk by not buying your Australian Dollars prior to next Thursday.

We have the release of US GDP data and this often has a big impact on commodity based currencies including the Australian Dollar.

Generally speaking if the data is positive later today this could see Australian Dollar strength vs the Pound but if the data is lower than expected then we could see the Pound make further gains.

If you have a 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 (Tom Holian) on teh@currencies.co.uk and I will endeavour to get back to you as I can.

Will the Pound to Australian Dollar rate manage to hold its ground above 1.70? (Joseph Wright)

The Pound has fallen against most currency pairs today, making the converting of Pounds into other foreign currencies such as the Aussie Dollar a less attractive prospect.

Since breaking back above 1.70 against the Aussie Dollar, which has been a key psychological level for GBP/AUD since the Brexit vote the Pound has managed to hold its ground above it despite some negative data coming out the UK today.

Sterling has been helped regarding the GBP/AUD pair by Aussie Dollar weakness, as some particularly poor retail sales figures from down under recently spooked the markets.

Today it was also retail sales figures that disappointed but this time it was the UK’s retail sales figures.

With Brexit talks forever in the financial headlines at the moment putting pressure on the Pound, along with disappointing data out of Australia recently it may be a battle of which currency is the weakest that determines where GBP/AUD goes next.

There are no more major economic data releases out of the UK this week, so I expect the pair to continue to be driven by sentiment. With all that’s going on in the UK politically at the moment I there can always be a news release that swings GBP exchange rates, and if you wish to be updated if there are any big moves it’s certainly worth registering your interest with me.

Next week there will be releases that could impact the GBP/AUD rate further, so it’s worth getting in touch before the weekend if you wish to plan around any key times.

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.

Sterling – Australian Dollar rate flies through 1.70 – Australian Dollar weakness and Sterling strength (Daniel Wright)

For a few weeks now I have had many clients waiting to be able to achieve the 1.70 mark for their exchange of Pounds into Australian Dollars and finally I have been able to give some of them the rate they have been waiting for.

Overnight on Tuesday, or Wednesday morning for those in Australia we had news that Australian inflation levels had dropped off to 1.8% from a predicted 2%, leading to the Australian Dollar weakening a little against most major currencies.

The reason a lower inflation figure usually leads to a currency dropping off is due to the fact that lower inflation figures decreases the chance of an interest rate hike. An interest rate hike is generally seen as positive for the currency concerned so if the chance of that happening decreases then usually so does the value of the currency involved.

For those that are tracking GBP/AUD exchange rates, you received a second piece of good news on Wednesday morning (or evening for those in Australia) as we had U.K growth figures released and they too, were a little better than expected year on year.

We have seen GBP/AUD exchange rates creep up because of these two factors and they are now almost at the best exchange rate they have been at this year, as an example a £150,000 exchange into AUD now compared to a few months back will net you almost AUD 15,000 more!!

If you are in the position where you may wish to purchase or sell Australian Dollars in the coming days, weeks of months then this can be seen as a fantastic opportunity for you, with brexit still hanging over the head of the Pound there is always that chance it may drop back again at any time.

If you would like to check  that your current provider or bank  is getting you the most for your money then why not take advantage of a currency audit which I will be more than happy to do for you. Email me the price you have been quoted, the volume involved and what time you got this and I will get back to you and let you know if you are getting a good deal or if there is a great deal of money to be saved.

We are very transparent here, if your deal is great I will be honest with you and let you know just that, if it isn’t then I will let you know how much more you can get and how I can help you.

Should you wish to take advantage of this then you are welcome to email me (Daniel Wright) on djw@currencies.co.uk and I will be more than happy to get in touch personally.

Australian inflation and UK GDP push GBPAUD above 1.70

GBPAUD exchange rates have strengthened by 3 and 1/2 cents today off the back of Australian and UK economic data  releases. To put this into monetary value a £200,000 transfer at the high of the day compared to the low would have achieved our clients an additional 7,000 Australian dollars.

In the early hours of the morning Australia released their latest Consumer Price Index (inflation) numbers. Forecasters were predicting 2% however the inflation numbers disappointing and fell to 1.8%, leading to a sell off of the Australian dollar. The reason for the Australian dollar being heavily sold off is because now inflation has fallen the Reserve Bank of Australia will continue to give dovish statements in regards to interest rates.

Later in the morning the third revision of UK GDP was released. GDP exceeded expectation and was released at 0.4% from 0.3%. This doesn’t seem much, however it shows growth and something that many economists have not foreseen. The pound strengthened dramatically against all of the major currencies as this data release could be the final nail in the coffin and the Bank of England will be forced to raise interest rates on November 2nd.

For clients buying Australian dollars using sterling, central levels have now broken through 1.70 and for many clients this has been there target over the last 6 months. People need to remember that central levels were in the 1.50s not long ago. For clients trading short term, you need to decide whether to cash in now or wait for the Bank of England’s interest rate decision.

If you are buying or selling Australian dollars in the future, I would strongly recommend getting in contact to discuss your situation. The company I work offers a proactive service to offering economic information whilst having the ability to offer award winning exchange rates. Feel free to email me with your requirements along with the timescales you are working to and I will respond with my forecast and the process of using our company drl@currencies.co.uk.

 

GBPAUD rises on Australian Inflation data!

The Australian dollar has weakened in overnight trading as uncertainty over the Inflation outlook for Australia shifts which has raised concerns over when the Australian Reserve Bank (RBA) would raise interest rates. This is presenting a very interesting short term opportunity to buy Australian dollars which may not last. This morning at 09.30 am is UK GDP and then next week the Bank of England decision which could see the pound slide further, there is of course no guarantee of this but it is a real possibility.

Overall the pound seems like it will lose value in the coming weeks as Brexit uncertainty continues to be a thorn in the side of the pound. Economic data is also starting to suffer so if you need to buy Australian dollars getting something changed on any spike higher seems to me the safest bet. The Aussie is much stronger against the pound because markets are bracing themselves for an interest rate hike longer term, whilst this might have taken a minor step back on the Inflation data overnight, it is still the central element of most forecasts.

Combine the longer term rate hike down under with the uncertainty of politics and economic data in the UK and we can sketch out a fairly concerning scenario for AUD buyers with pounds. If you have a transfer to make in the future buying or selling Australian dollars, making some plans around this latest shift in the market is very sensible. Overall there is a very strong belief that further volatility exists up ahead, it should not be taken too much for granted the Bank of England will raise rates next week and the pound will rise.

Thank you for reading and if you wish to discuss or run through the market please do not hesitate to get in touch with me Jonathan by emailing jmw@currencies.co.uk

Brexit to dictate GBPAUD exchange rates

Last week GBPAUD exchange rates were heavily influenced by Brexit developments. There were a few key head lines.Firstly Brexit negotiations had hit deadlock according to head EU negotiator Michel Barniner however European Council President Donald Tusk believes the deadlock comments had been exaggerated. In addition UK Prime Minister Theresa May gave a speech at the EU summit late Friday and confirmed the UK and EU had made key progress and a deal on EU citizens rights is nearly secured and reports are suggesting that she could offer another €20bn for the divorce settlement fee.

It appears that Brexit negotiations are heating up, and if EU citizens rights and the divorce settlement bill are agreed, I expect that the pound will make considerable in roads against the Australian dollar. 

In other news there are a few key economic data releases to look our for in the weeks to come. On Wednesday morning Australia will release their latest inflation numbers. This data releases can have a major influence on future monetary policy decisions. Furthermore forecasters are still suggesting there is over 50% chance that the Bank of England will raise interest rates on November 2nd. If this occures GBPAUD exchange rates could break through the 1.70 barrier.

If you are buying or selling Australian dollars in the future, I would strongly recommend getting in contact to discuss your situation. The company I work offers a proactive service to offering economic information whilst having the ability to offer award winning exchange rates. Feel free to email me with your requirements along with the timescales you are working to and I will respond with my forecast and the process of using our company drl@currencies.co.uk.