Daily Archives: October 6, 2017

Australian Dollar recovers against the Pound (Daniel Johnson)

Australia’s worst retail sales data in four years

Early in the week we saw some quite poor economic data from down under. Retail sales data which was predicted to come in at a 0.3% up, it actually dropped by 0.6% and the pound benefitted as a result. This was the worst retail sales data for four years. It seems consumers have made cuts due high levels of personal debt in goods such as furniture, clothing and food.

Interest rates were kept on hold at 1.5% due to high debt levels, poor inflation and a slow down in wage growth. Despite this I am still of the opinion the UK economy is in a much worse position due to the uncertainty surrounding Brexit and a lack of political stability.

May fails to unite the Conservatives

Sterling’s rally quickly ended following the debacle which was Theresa May’s speech.  Her aim was to unite the party and bring stability to the conservatives. I think it was close to the opposite.
She coughed throughout  the speech and party posters fell on the floor to add insult to injury. A member of the public managed to breach security and hand her a P45 which had a fake Boris Johnson signature inscribed. In house bickering and the uncertainty of May’s job is not helping the pound. Political uncertainty will almost certainly impact the currency in question. A client of mine said it was so bad it seemed as though it was a sketch from Yes! Prime minister.

The bookmaker Betway have slashed odds to 5/6 that May will no longer be in power by the next general election.

On the Aussie front we could see further gains due to increased demand for Australia’s biggest export Iron ore. I am of the opinion Sterling is in a bad spot and we could see further losses short to medium term.

If you have a currency requirement I will be happy to assist. It is crucial to be in touch with an experienced broker when the market is currently so hard to predict. If you let me know the details of your trade I will endeavour to produce a free trading strategy to suit your individual needs. Have faith knowing you will be dealing with a brokerage in business for over 16yrs, Foreign Currency Direct Plc. We are a no risk entity as we do not speculate on the market and we are registered with the FCA. If you have a currency provider take a minute to send over the rates they offer and I am confident I can demonstrate a significant saving. I can be contacted at dcj@currencies.co.uk . (Daniel Johnson) Thank you for reading.

 

How will US Non-Farm Payroll data impact Sterling vs the Australian Dollar? (Tom Holian)

The Pound has started to struggle recently against the Australian Dollar during the course of the week after British politics has begun to make the headlines in recent times.

The Conservative party conference did not go well with Theresa May being affected by a persistent cough, letters falling off the wall behind her and a comedian presenting her with a fake P45 claiming to have been signed by Foreign Secretary Boris Johnson.

After GBPAUD exchange rates hitting as high as 1.71 recently and breaking through 1.70 a number of times towards the end of last month the Pound has started to fall against all major currencies including vs the Australian Dollar falling back into the 1.67 level earlier today.

Later today we could see a huge movement for the Australian Dollar as we have the release of US Non-Farm Payroll data due out at 130pm this afternoon.

Owing to the recent Hurricanes Harvey and Irma the figures could be drastically different and as this is such a difficult figure to predict accurately then any change is likely to cause big movement on the currency markets and any change in global appetite to risk and therefore often has an impact of the value of the Australian Dollar.

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.