Daily Archives: October 5, 2017

Bad news for the Pound pushes it lower, are trade levels in the early 1.60’s on the horizon again? (Joseph Wright)

Despite some negative data being released down under in the early hours this morning, the Pound has still dropped against AUD throughout the day’s trading.

The worst Retail Sales figures in 4 and a half years were published this morning, as it turns out that Australian consumers are beginning to cut back on items such as food, clothing and furniture.

The reading for July was also revised down from the previous reading, meaning that the two drops in sales figures are the biggest back to back drop since 2010.

Despite this this disappointing data release the Pound has still fallen against the Aussie Dollar, whereas the majority of other major currency pairs have risen against the Aussie.

Sentiment surrounding the Pound took a knock today as ratings agency, Standard & Poors questioned whether the UK could withstand an interest rate rise, and it emerged that car sales in the UK are continuing to drop.

There has also been a lot of talk regarding UK Prime Minister, Theresa May’s calamitous speech to the Conservative party conference on Wednesday.

Odd’s are increasing on her resignation and although I don’t expect any changes at number 10, I think any talk surrounding this matter could result in a weaker Pound which could push the GBP/AUD pair down towards the 1.60 mark.

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.

Will the Australian Dollar drop in value in the coming months? (Daniel Wright)

Many clients have been asking me recently where the Australian Dollar may head next, with no interest rate move on the cards in the near term and numerous global problems at present I feel that the Australian Dollar may get a little weaker in the coming months.

A recent article in the Sydney morning herald suggests that many feel the same. Much of the article is based around the U.S Dollar and Australian Dollar flows. The Federal Reserve in the States have hinted at a further three interest rate hikes in 2018 and many analysts still believe we will see very little movement on interest rates throughout 2018.

An interest rate hike is seen as positive for a currency and a cut is seen as negative, as a hike will make that currency more attractive to investors. On top of this, you tend to find that you can see a flow between USD/AUD when there are times of global issues. The Australian Dollar is perceived as a ‘riskier’ currency and the U.S Dollar still held in regard as safer haven currency.

As many regular readers will know, there are a huge amount of problems around the world at present, both in terms of economies around the world and politically too, I don’t see many of these going away anytime soon, so we may see the Australian¬† Dollar take a few knocks as and when there are further issues that crop up.

My personal opinion is that although the Australian economic data has been ok, the economy still isn’t flying and there is still an issue with house price inflation in many areas and that is a problem that is hard to resolve as the RBA are still not in the position to raise interest rates at present.

Overnight last night we saw extremely poor Retail Sales data for Australia, leading to Australian Dollar weakness overnight.

If you are in the position that you need to exchange Australian Dollars in the near future then I can not only help you with getting the best rate on your exchange but also with the timing of your transfer.

Should you require assistance then I am always happy to provide you a quote against your current choice for exchanging money, along with having a discussion with you to tailor a game plan for how to approach the upcoming exchange.

If you would like me to get in touch with you then feel free to email me directly on djw@currencies.co.uk and I will be more than happy to get in touch with you personally.