Daily Archives: May 15, 2018

An opportunity has arisen for AUD sellers (Daniel Johnson)

GBP/AUD in detail

It was only recently GBP/AUD was shooting up threatening to break through the 1.85 mark. Unfortunately a host of poor data has been released, inflation was poor retail sales was predicted to arrive at – 0.5% and landed at – 1.2% and GDP was 0.1% the worst data for five years. The Bank of England (BOE) were widely predicted to hike interest rates in May until these releases.

The market moves on rumour as well as fact so a hike had been factored into the rates, the bad data caused investors to lose confidence and following the hike GBP/AUD has been in the 1.79’s. A five cent movement is not a small move. The movement is definitely more to do with Sterling weakness more than Aussie strength. The Reserve Bank of Australia (RBA) has a similar interest rate forecast as the UK. If I was selling Aussies I would be looking to move at current levels.

I believe Sterling is chronically undervalued, I do not expect there to be a huge rally short term, but clarity in regards to Brexit will cause the pound to rally. It is important to remember GBP/AUD was 2.20 + pre- Brexit.

If you have a currency requirement I will be happy to assist. If you let me know the details of your trade I will endeavour to produce a free trading strategy. During a period of such uncertainty it is important to be in touch with an experienced broker if you wish to maximize your return. We have tools at our disposal to make sure you do not miss out if there is a spike in your favour.

If you already have a currency provider in place. Drop me an email with what you are being offered and  I am very confident I will be able to demonstrate a significant saving. It will only take you two minutes and I am  sure it will be worth your while. You can trade in safety knowing you are with a Foreign Currency Direct PLC, a firm trading for over 16yrs and FCA registered.

If you would like my help feel free to email me at dcj@currencies.co.uk.

Thank you for reading.

 

Jobs data to cause movement this week for the Pound vs the Australian Dollar

The Pound vs the Australian Dollar has been trading either  side of 1.80 on the Interbank level during the last few days.

The Australian Dollar has gained by as much as 5 cents vs the Pound which appears to have strengthened against the Pound after a combination of negative data from the UK.

The Bank of England confirmed last Thursday that they would be again keeping interest rates on hold with a 7-2 split in favour of keeping rates the same and this caused the Pound to fall against a number of different currencies.

It wasn’t just the announcement itself but also the downgrading of the recent UK’s growth forecast which caused the Pound to struggle and later on this morning we have a number of key economic indicators in the form of both Average Earnings data as well as UK unemployment levels.

Both have been very impressive in recent times and so another positive announcement could see the Pound improve against the Australian Dollar later today.

On Thursday the focus will return to the Australian jobs market with Australian unemployment data combined with the Participation rate. The expectation is for 5.5% unemployment so anything different is likely to cause a lot of movement.

Personally, I think we could see GBPAUD rates go in an upwards direction if the data from the UK is positive this morning.

Having worked for one of the UK’s leading currency companies for 15 years I am able to offer you bank beating exchange rates as well as helping you with the timing of your transfer.

For a free quote then contact me directly by calling 01494787478 and asking for Tom Holian when calling or email me directly with a brief description of your currency requirement and I look forward to hearing from you.

Tom Holian teh@currencies.co.uk