Daily Archives: March 1, 2018

Still waiting for GBPAUD to hit 1.80!

Well readers forgive me for my optimism, I have been banging the 1.80 drum for some weeks now. It just proves how tricky the markets are to predict. I still feel there is a very good shot to hit it and I still believe we will hit this at some point in the coming weeks, next week’s RBA (Reserve Bank of Australia) decision could be important.

Critical too will be the outcome from Theresa May’s speech tomorrow which could easily see the pound higher. Personally, I feel the market will either not react much or will possibly move lower on any news. I believe much of the good news and sentiment over Brexit has been priced in already and today was a perfect example of how quickly the mood can change.

Whilst I remain upbeat for the 1.80 we are still at a very good level compared to the 1.60’s and even 1.50’s some client have had to endue in recent years. If you are aiming to buy Australian dollars at 1.80 please let me know via my personal email jmw@currencies.co.uk and I can set you up an alert so you don’t miss the price.

The outlook for the GBPAUD pairing in March will also need to contend with the developments on US interest rates which would see the US dollar stronger and potentially the Aussie weaker. There is a real correlation between the two currencies and clients looking to buy or sell AUD should be aware of the potential for this element to trigger movement and volatility.

For more information at no cost or obligation please speak to me Jonathan Watson by emailing jmw@currencies.co.uk. Thank you for reading and I look forward to hearing from you in the future.

Australian Dollar Weakens after US Fed Intervention (James Lovick)

The Australian dollar has come under renewed pressure following new developments in the US following a speech from US Fed Chair Jerome Powell. He feels the US economy has strengthen since the last December rate increase and has indicated that interest rates may need to rise faster than initially first thought. This is relevant to the Australian dollar as the currency is heavily impacted by changes in US monetary policy. In this instance the prospect of higher interest rates in the US are likely to mean funds leaving Australia and back to the US where interest rates will be higher which is negative for the Aussie.
From here on any changes in stance from the Reserve Bank of Australia are likely to see considerable volatility for the Australian dollar.

GBP AUD

Clients looking to buy or sell Australian dollars with pound need to keep a very close eye on all the Brexit developments this week. There have been a lot of political interventions across the spectrum over the last couple of days ahead of the eagerly awaited speech from UK Prime Minister Theresa May. The Irish border has become the political hot potato this week and a positive speech which is able to alleviate those concerns could see considerable strength for sterling exchange rates. There is a massive risk though that there could be major political uncertainty if political forces become able to force a general election or a second referendum.

UK data is light today with UK mortgage approvals although construction data from the Purchasing Managers Index released tomorrow could prove influential for GBP AUD. The construction sector is one of the first sectors to have troubles ahead of a downturn and the data could proved a good snapshot as to the health of the sector.

To discuss the Australian dollar and how it is likely to impact on your own currency requirement then please get in touch with me James at jll@currencies.co.uk