Will the Pound continue to fall against the Australian Dollar? (Tom Holian)

Sterling vs the Australian Dollar is now at its lowest level in over 2 months as the Brexit issue continues to negatively affect the value of the Pound against all major currencies.

Our Prime Minister Theresa May has still yet to confirm whether the UK will choose to follow a soft or a hard Brexit and this is what is causing the ongoing problems for Sterling exchange rates against the Australian Dollar.

Until we have a clearer indication as to which route the UK will choose this is likely to keep Sterling under pressure.

With Theresa May due to address the markets on Tuesday we could see some volatility for GBPAUD exchange rates depending on what she has to say.

The issue is that if we opt for a hard Brexit this means removing ourselves from the single market which is what has caused the demise in Sterling in recent weeks and months.

Indeed, since June when the vote to leave the European Union took place we have seen losses of over 40 cents for GBPAUD exchange rates.

The price of iron ore has risen recently which has also helped to strengthen the Australian Dollar vs Sterling.

As the AUD is a commodity based currency any increase in the value of commodities or raw materials helps to strengthen the Australian Dollar vs Sterling.

With the Supreme Court judgement due shortly I think this could help the situation as it will allow the Prime Minister to provide a clearer future for the UK but until then Sterling is likely to remain under pressure.

In the short term I expect the Pound to continue to struggle against the Australian Dollar so if you need to send money down under in the next few weeks it may be worth looking at buying a forward contract which allows you to fix an exchange rate for a future date.

Having worked in the currency markets since 2003 I am confident that not only can I offer you bank beating exchange rates but also able with my experience to help you with the timing of your transfer.

To find out more or if you’d like a free quote when buying or selling currency then feel free to contact me directly and I look forward to hearing from you.

Tom Holian teh@currencies.co.uk

 

 

Iron ore rally triggers Pound sell-off, will the GBPAUD exchange rate continue to fall? (Joseph Wright)

The GBP/AUD exchange rate is currently trading close to a 2 month low for a number of reasons, with the likelihood being that the Pound will continue to see weakness in my opinion.

The Aussie Dollar is what’s known as a commodity currency as it relies heavily on exports, and with the price of iron ore surging the Aussies value has been boosted. At the same time Brexit jitters are really beginning to weigh on the Pound’s value as currency markets await the outcome of the Supreme Court’s decision on whether or not the UK government require parliamentary approval, before invoking Article 50 and initiating the Brexit process.

The Pound has lost value across the board this week after a much talked about interview with Theresa May offered the marketplace an idea of the PM’s plans for the Brexit. Many viewed her comments to carry a ‘Hard Brexit’ bias although she denies this, irrespective of her claim the Pound has been sold off heavily in the wake of her comments with the UK not being able to keep ‘bits’ of EU membership being one of the stand out comments.

The general consensus from the interview was that the Government will be focusing on restricting immigration as opposed to retaining access to the EU’s single market, and the Pound has been softening since this interview.

The outcome of the Governments appeal to the Supreme Court is expected to be released within the next few days, although the exact date is unknown so feel free to get in touch if you wish to be kept up to date with how this event unfolds.

If you are planning to make a currency exchange involving the Pound and another foreign currency, it’s well be worth your time getting in contact with me on jxw@currencies.co.uk in order to ensure you make a well informed decision on when to make that particular transfer, as well as benefiting from highly competitive exchange rates from one of the UK’s leading foreign currency brokerages. Just provide me with a basic outline of your currency requirement and I will be back in touch with you as soon as possible.

 

 

Selling Australian Dollars ahead of Supreme Court Ruling (James Lovick)

GBP AUD exchange rates are on tenterhooks at present as we all eagerly await the Supreme Court ruling on whether or not UK Prime Minister Theresa May must consult Parliament before invoking Article 50, the formal process to withdraw from the European Union. This topic has been discussed at length on this blog but I cannot emphasise how important the decision is and how much of an impact it will have on the price of sterling.

It has been reported this afternoon that Theresa May will be making a speech surrounding Brexit on Tuesday of next week. This is likely to create volatility and will also fall around the time of the Supreme Court ruling. The Supreme Court normally releases its verdicts on a Wednesday although this is by no means a requirement or guaranteed in any way.

However it would be quite fitting that Theresa May makes a speech next Tuesday with the outcome to follow from the Supreme Court the day after. It is my understanding that the government has requested early viewing of the outcome to put preparations in place in light of the seriousness of this case. Next week looks set to be a rollercoaster for any clients buying or selling Australian dollars and there could be some very good opportunities.

Those clients with a requirement to buy Australian dollars would be wise to get in touch as there is a risk that the pound could fall sharply. The flip side is that if Theresa May loses the appeal the sterling is likely to move higher.

Data is light as we end this week so it will be politics largely driving the markets. Australian home loans, vehicle sales and consumer confidence are all released next week which will give clues as the performance of the Australian economy.

If you would like further information on buying or selling Australian dollars 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

Buying Australian Dollar rates recovering marginally following yesterday’s slides (Joshua Privett)

Buying Australian Dollar exchange rates this week have been the biggest under-performer in the marketplace, with GBP/AUD exchange rates dripping down below the 1.65 point once more.

This was due to a combination of curve-balls that have left investors and analysts frustrated at the sheer number of variable impacting GBP/AUD rates of exchange.

Markets went into the week anticipating net gains for Sterling. Strong economic performance data was anticipated on Wednesday, which ended up exceeding expectations. Furthermore the expectation of an upcoming Supreme Court ruling favorable for the Pound on the financial markets should have provided a buoyant and supportive platform for Sterling exchange rates this week.

However, two unforeseeable events stole the spotlight.

Firstly Theresa May’s comments on a Sky news interview on Sunday, which the website has documented repeatedly, caused the air of cautious confidence surrounding the Pound to be violently replaced with anxiety. Hints at a harder Brexit were made, and financial markets rarely appreciate hefty changes to the status quo.

Secondly, GBP/AUD fell foul from the most recent scandal to come from President-Elect Trump’s camp. Serious allegations have been made about the campaign’s active association with Russia, and, as such confidence in the Dollar was justifiably shaken.

In these instances, investors seek high short-term returns elsewhere whilst the storm blows over. The high interest on the likes of the Australian Dollar and the New Zealand Dollar are just the ticket and is why GBP/AUD and GBP/NZD have had the most difficult week.

However, the excitement about the upcoming Supreme Court decision is still there…if now a little quieter. 

The lessons from this week for AUD buyers is that unsuspecting news at the moment, with the charged atmosphere in the run up to the triggering of Article 50, can be more hurtful for Sterling than helpful.

As such, expected opportunities should be seized to avoid the increasing risk as we edge closer to March. The Supreme Court ruling could come out any day from now so a premium will be put on being able to move quickly this week to avoid being last to the party on any improvement, which in this currently hypersensitive market may only be around for short while.

You can contact me on jjp@currencies.co.uk or by calling on 01494 787 478 and asking the reception team for me (Josh) to discuss a strategy for your transfer aimed at maximizing your currency return and protecting it from any sudden pitfalls, which can occur in this marketplace with little warning.

I have never had an issue beating the rates of exchange on offer elsewhere, so a brief conversation could save you thousands on a prospective transfer.

 

Are GBP/AUD Rates Heading Below 1.60? (Matthew Vassallo)

GBP/AUD rates have dropped dramatically recently with the pair now trading under 1.64!

The Pound has lost over five cents this week following UK Prime Minister Theresa May’s comments over the weekend regarding Brexit and if this trend continues over the coming days we could see the AUD make a move towards 1.60.

Whilst the Pound is likely to find market support above this level, it is another example of how fragile the UK economy remains in the minds of investors and how the uncertainty surrounding the UK’s exit from the EU is having such a detrimental effect on the Pound’s value.

Theresa May’s interview gave us an insight into the current thinking of the government and whilst many will argue that she is trying to strengthen her negotiating position ahead of the triggering of Article 50 in March, any indication that we are looking at a hard Brexit will only add to investors’ concerns that the UK will find itself out in the cold for years to come.

We need to consider that at present the EU are in control of all our trade agreements and we as an economy have benefited from these. The UK has no real experience of negotiating trade deals and with immigration also a key topic to consider, how will the UK economy fair for the 5-7 years it could take to put these agreements in place?

Whilst the Australian economy is not performing overly well, it has these trade deals in place already and with China a key trade partner and a generally growing economy, they can fall back on these in times of economic hardship.

The Pound did find some support yesterday following comments made by UK Chancellor Philip Hammond, who said that no decision had yet been made and that the UK could remain part of the single market but this to me is the key point, no one actually knows.

We remain in a unique position as no country has left the EU before and therefore investors are having to shoot in the dark and having to account for almost every outcome and therefore we do not have enough information to hand to make a firm decision either way.

With the Supreme Court meeting again today we could get a decision regarding the triggering of Article 50 at any time, so it would be wise for anyone with a Sterling currency requirement to keep in close contact with their personal currency broker, to ensure any opportunities that arise are not missed.

If you have an upcoming GBP or AUD currency exchange to make and you are looking for the best exchange rates available, then please feel free to contact us on 0044 1494 787 478 and ask one of the team for Matt.

We can provide key market information and analysis ahead of any transfer, whilst keeping you up to date with all the latest market movements. We help our client to time their exchange to maximise the market value available and have awards for our exchange rates and service.

If you would like to contact am directly I can be emailed on mtv@currencies.co.uk

Volatility expected on GBP/AUD (Daniel Johnson)

Supreme Court Judgement to impact GBP/AUD

Last weekend Theresa May stated during a Sky news interview that she would be willing to sacrifice free trade for control over immigration. This indicates her intention to implement a hard brexit.  Investors reacted and the pound fell against the Australian Dollar. The key factor on whether there will be a hard or soft brexit will be the supreme court judgement on whether parliament will get to vote on triggering article 50. If they do there is the strong possibility of a soft brexit and Sterling should rally. There could be temporary trade deals in place while new deals are struck which would take some of the uncertainty surrounding brexit away and give faith to investors.

If the ruling goes the other way, trade negotiations will be elongated and it is likely the two year target for an exit from the EU will no longer be realistic. Sir Ivan Rogers, the UK ambassador to the EU recently resigned stating an exit could take a long as ten years.

UK Manufacturing and GDP Data could effect GBP/AUD 

Today we will see the release of UK manufacturing data and also UK GDP, I think we could see an increase and as a result a small movement in Sterling favour against the Australian Dollar.

Australian Economic Outlook

Despite the potential for pound weakness short term, I feel Sterling could gain strength medium-long term against the Aussie. Once some of the uncertainty surrounding brexit is removed the pound should start to recover. Down under however, economic data has been poor and there are fears Australia could lose it’s AAA credit rating. With investors moving funds out of the Australian Dollar and moving to the safer haven of the US dollar. Higher returns are now promised State side with further interest rate hikes expected following the recent hike in December. It would be wise to keep an eye on Chinese data if you have a trade involving Australian Dollar. Australia are heavily reliant on the Chinese purchasing their raw materials. If Chinese growth dwindles expect Australian Dollar weakness.

If you have a currency requirement and would like assistance forming a trading strategy I will be happy to help. I will also provide a comparison against your current provider and I am very confident I can show you a significant saving. You can e-mail me at dcj@currencies.co.uk. I look forward to being of assistance, thank you for reading.

Australian Dollar makes gains on Sterling as ‘Brexit’ continues to leave the Pound in trouble (Daniel Wright)

Australian Dollar exchange rates have continued to make gains against Sterling this week as fears continue to grow in the U.K about the potential of a hard ‘brexit’ being the route that the Government will aim to take in negotiations once article 50 is triggered.

For those who are not aware, the U.K is going through a huge change at present and currently awaiting a Supreme Court hearing to decide what the next steps for that change may be.

We expect to see a decision in the coming days and should the Supreme Court stick with the original decision them Prime Minister Theresa May will have to put the decision to trigger Article 50 through Parliament, which may give the Pound a boost as it should lead to a higher chance of a ‘softer’ brexit.

Should the Supreme Court overturn the ruling about Parliament then we may see Sterling drop further as this heightens the chance of a harder brexit which would more than likely include leaving the single market and may lead to a number of problems further down the line for U.K trade.

All of this is causing a great deal of uncertainty and is casting a grey cloud over the Pound which is presenting a fantastic opportunity for those looking to sell Australian Dollars and buy Sterling.

If you are in this position then it may be prudent to start to consider your options, as although there are expectations that the Pound may fall a little further in the coming weeks, depending on the decision, I feel that later down the line Sterling exchange rates will climbe back as we start to see a little more certainty on just what may happen.

For assistance with any currency exchange it is essential that you have a proactive and efficient currency broker on your side. If you are in the position where you need to buy or sell Australian Dollars and you want to be kept fully up to speed with the market and to have any potential opportunities highlighted to you then let us be your eyes and ears on the markets.

You can email me (Daniel Wright) directly on djw@currencies.co.uk with a description of what you are looking to do and I will be more than happy to contact you personally and explain just how I can help both with the timing of your purchase and making sure you get commercial rates of exchange too. I look forward to hearing from you.

 

GBPAUD hits 2 month lows, what next?

Sterling has dive bombed as Theresa May hints that a hard Brexit is more likely as she outlines to pursue control of law and immigration. It is notable she has stated the only mistake here are anyone who implies in advance what the PM is really seeking in negotations. So whilst this GBP weakness may turn out to be unfounded much longer term for now it seems likely to persist. GBPAUD rates could easily test 1.60 or maybe even lower.

It isn’t all bad news as there is a strong likelihood the pound will rise on the Supreme court judgement which is expected to confirm Theresa May will need to seek the approval of parliament before triggering Article 50. This should lead to sterling rising as it makes apparent the Government will not have a clear path to their goals. There are all manner of wider interests in the UK seeking to derail Theresa May’s plans and the passage through parliament will not be easy on any bills. The UK might even need another election to ‘debate’ Theresa May’s vision.

So all in all I expect the pound to remain lower against the Aussie as it makes apparent that the pound will be the driver. There has lately been lots of good news in the Australian economy with some forecasting the RBA might be forced to raise interest rates later in the year. For now the strength of the US dollar is acting as a big drag on both the the pound and Australian dollar which will present swings.

On the whole I expect this market to favour clients selling AUD for sterling and clients looking to buy Aussies with pounds need to be paying extra attention and making extra effort to avoid problems. If you wish for some assistance to monitor the exchange rates and pick the spikes then you are reading the right blog. I work as specialist currency broker helping and assisting  clients looking to buy and sell Australian dollars with the most up to date news and market insight. For more information at no cost or obligation please speak to me Jonathan Watson by emailing jmw@currencies.co.uk.

Thank you for reading, I hope you find this useful and I welcome any feedback on the post or enquiries on GBPAUD transfers.

Jonathan

What to expect this week for GBPAUD exchange rates (Dayle Littlejohn)

With limited Australian economic data last week and UK  data exceeding expectation you would have thought the pound would have continued its good run against the Australian dollar. However this was not the case as GBPAUD started the week at 1.7175 and is now fluctuating in the 1.66s.

The reason for the decline is the looming Supreme Court ruling. The Supreme Court judges are back to work on the 11th January from their Christmas festivities and they should announce whether UK Prime Minister needs the approval of Parliament before triggering Article 50.

This announcement links directly to either a ‘Hard’ or ‘Soft’ Brexit. If Mrs May has to seek Parliament approval then a softer Brexit becomes more likely and therefore the pound could begin to start making gains against the Australian dollar. Where as if she overturns the High Court decision and she can invoke Article 50 by March then further losses for the pound vs the Australian dollar are on the horizon.

Personally I wouldn’t be surprised to see the judges stick together and therefore a softer Brexit becomes more likely. However 2016 was the year of surprises, therefore getting in touch early and being in the position ready to convert currency is the way forward.

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! **

 

Buying Australian Dollar exchange rates expected to improve following Wednesday (Joshua Privett)

The first week of 2017 has had a much quieter beginning than last year, with buying Australian Dollar exchange rates seemingly anchored to the 1.68-1.70 range.

This behaviour on the Sterling Australian Dollar pairing is suggestive of a market awaiting some very important news.

I hate to flog a dead horse for our regular readers by consistently addressing the same material. But the mechanics of the Brexit will continue to govern the value of the Pound moving forward over the next few years, so we will all have to get used to repeated material as we await key decisions and verdicts.

For those who are unaware, currently the Supreme Court is deliberating on Parliament’s role in the triggering of Article 50, addressing an appeal on November’s decision by the Judicial Court which permitted a vote in the House of Commons on the matter.

As in November, financial markets should react well to the decision to involve Parliament in the Brexit process.

Parliament’s involvement in triggering Article 50 plays well for the Pound’s attractiveness, and therefore value, on the currency markets for a few reasons.

For one it means the aims and current state of negotiations moving forward to leave the EU will be much more public that if it was purely Theresa May acting through her Cabinet. Investors therefore won’t feel they will be taking such a serious gamble in holding on Sterling as they will remain informed purchasers.

There is also the greater likelihood of a softer Brexit – and whatever your own politics, this is certainly what global financial markets as a whole are hoping for – which again explains why a ruling to uphold the decision to involve Parliament should see the value of the Pound rise against its counterparts.

The expectation is that the Supreme Court will uphold the initial conclusion of the Judicial court a few months ago. This should see GBP/AUD rise to the tune of 3 cents, as it did in November.

The verdict is expected between the 12-17th of January, so if you are a Dollar seller, it may be wise to secure your currency ahead of this period, to avoid seeing your transfer gain greater expense, as it did throughout the Novemeber period last year.

On top of this, we are also expecting very positive economic performance information for the UK economy on Wednesday, focussing on a resurging manufacturing sector, alongside a more general look at UK growth in the final quarter of last year. Again, like most performance data released since the Leave Vote, markets have been surprised by the resilience of the UK economy, and the Pound should find another helping hand here.

So, in short, very good news is expected to be provided for Australian Dollar buyers in the short-term. Two major events are expected to make your transfers more profitable, which is why anyone looking to conduct a Sterling purchase, even over the next few months, should look to how you can secure these still historically favourable exchange rates before Wednesday.

If you are planning to make a currency exchange involving the Pound and another foreign currency, it’s well be worth your time getting in touch with me on jjp@currencies.co.uk in order to ensure you make a well informed decision on when to make that particular transfer, as well as benefiting from highly competitive exchange rates from one of the UK’s leading foreign currency brokerages. Just provide me with a basic outline of your currency requirement and I will be back in touch with you as soon as possible.

I have never had an issue beating the rates of exchange on offer elsewhere, and these current exchange rates can be fixed in place for anyone wanting to prebook their currency transfer later in the year at current exchange rates.