Tag Archives: award winning exchange rates

Will further interest rate cuts result in a drop for the Australian Dollar this year?

The Australian Dollar has continued to come under pressure recently which has helped the Pound recoup some of its recent losses against the currency. One of the reasons for the downturn for AUD is due to the interest rate cut that took place earlier this month, which has pushed Australian interest rates down to record lows. There are now predictions of further rate cuts from the Reserve Bank of Australia with some financial institutions predicting two further cuts this year, which would push the rate down to 0.75% and likely have a negative impact on the Aussie Dollars value.

Aside from these forecasts of rate cuts due to the slowing economy, another reason for Aussie Dollar weakness is due to the ongoing US-China trade war saga, which has caused concerns for the Australian economy moving forward. I would expect to see AUD exchange rates continue to struggle whilst this continues, owing to the fact that China is the countries main trading partner.

From the UK side the Conservative leadership contest is likely to remain the key driver, with Boris Johnson remaining the front runner. This leadership contest along with any Brexit related updates remain the key driver for GBP exchange rates so do keep on top of this if you’re following the Pound’s value due to an upcoming currency requirement.

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.

Shock Election Win for Australian Coalition Party & Breakdown in Cross-Party Brexit Talks Dominate the Headlines (Matthew Vassallo)

GBP has found some welcome support against the AUD over the past 24 hours, helping to curb any further losses after last week’s downturn.

Investors sold off their GBP positions in haste following a breakdown in cross-party Brexit talks. With both the Conservatives and Labour laying the blame for the breakdown at each other’s feet, investors’ confidence in the UK governments ability to achieve Brexit via a smooth transition, has quickly evaporated.

This negative feeling transpired and caused Sterling to lose over three cents in value against its Australian counterpart, with the Pound falling below 1.84 towards the end of last week.

Whilst the current outlook regarding the UK’s Brexit is still cloaked in uncertainty, the Pound has at least found a level of support during the early party of the trading week. GBP moved back above 1.85 overnight at its high but fell again as the results of the Australian election were finalised.

The very unexpected result was confirmed, and the expected Labour did not materialise. This went against the vast majority of the opinion polls, which for almost two years prior to the general elections, put the Labour party ahead of the more conservative Coalition, led by the now Prime Minister Scott Morrison.

How the new government’s policies will affect the Australian economy will be realised over time but for now the markets have taken a cautious approach to the new regime and with the Brexit undertone likely to continue to drive market sentiment and much of Sterling’s value, it may be the at the Pound struggles to make any sustainable inroads back towards and over 1.90 against the AUD in the short-term.

If you have an upcoming AUD currency transfer to make, you can contact me directly on 01494 787 478. We can help guide you through this turbulent market and as a company we have over nineteen years’ experience, in helping our clients achieve the very best exchange rates on any given market.

Our award winning rates can be accessed very easily over the phone and I can keep you posted with key market developments ahead of any prospective exchange you need to make.

Feel free to email me directly on mtv@currencies.co.uk to find out all the options available to you ahead of your currency transfer.

AUD Forecast – RBA Keep Interest Rates on Hold at Record lows as GBP Finds Support Overnight (Matthew Vassallo)

GBP/AUD rates have spiked back above 1.84 overnight, as the Pound continued its recovery following last week’s losses.

Sterling was under considerable pressure following UK Prime Minister Theresa May’s failure, to once again get Parliamentary approval for her Brexit deal. This was the third time she has failed to gain the necessary support from MP’s and investors reacted to this by selling off their GBP positions, causing a sharp dip in value for the Pound.

This downturn inadvertently boosted the value of the AUD, which has had its own problems recently. The AUD saw its value increase by over four cents against the Pound, hitting 1.8290 at the high.

At this stage it seemed as though GBP/AUD exchange rates could be heading back towards 1.80, with the markets seemingly losing faith in the UK’s ability to find some common ground over Brexit, with MP’s unable to agree upon the best way forward in regards to a Brexit deal with the EU.

With further twists likely in this ongoing saga, those clients holding GBP may look at this week’s upturn as an opportunity, with the uncertainty over the UK’s final Brexit position likely to hamper any significant upturns for Sterling.

Looking at the Australian economy and the Reserve Bank of Australia (RBA) met last night and as anticipated kept interest rate son hold at the current record lows of 1.5%.

Like other commodity based currencies, the AUD has struggled to impose itself of late, with a slowdown in global trade causing investors to shy away from riskier assets such as the AUD. With the Chinese economy also showing signs of a longer-term slowdown, due for the most part to the on-going trade stand-off with the US, the outlook for the Australian economy remains dovish.

If you have an upcoming GBP or AUD currency transfer to make, you can contact me directly on 01494 787 478. We can help guide you through this turbulent market and as a company we have over nineteen years’ experience, in helping our clients achieve the very best exchange rates on any given market.

Our award winning rates can be accessed very easily over the phone and I can keep you posted with key market developments ahead of any prospective exchange you need to make.

Feel free to email me directly on mtv@currencies.co.uk to find out all the options available to you ahead of your currency transfer.

AUD Forecast – Despite Brexit Uncertainty the AUD Remains Under Pressure (Matthew Vassallo)

The AUD has come under increasing pressure over recent weeks, with the Pound now trading around 1.87.

GBP has regained approximately 5 cents in the past few weeks, which is the equivalent of an additional 5000 AUD on 100k GBP/AUD currency exchange.

The Pound has made these inroads despite the on-going uncertainty surrounding Brexit. With the UK’s current exit deadline fast approaching, we still do not have any clarity on what the final outcome will be and this in itself you could argue, should be restricting any major improvement for GBP.

It seems as though the markets have spiked on the back of Parliaments decision last week, to move away from a no-deal Brexit outcome. However, unless UK Prime Minster Theresa May can convince MP’s to vote on her Brexit deal at the third time of asking, then an extension to Article 50 looks like the only remaining option.

How long any prospective extension might be is now what the markets will likely focus on and any further improvements for the Pound, will likely be impacted by this decision. With rumours of a two-year extension being floated, how will investors and the public react to such a scenario?

If an extension is granted without any indication of an agreement being virtually in place, then investor confidence could take a hit. It is likely to be followed my major public unrest, with people seemingly losing patience with the on-going saga.

Looking at the Australian economy and with concerns over falling house prices and a slowdown in global trade, investors seem to be shying away from the once popular AUD.

Add this to concerns that the Reserve Bank of Australia (RBA) will look to cut interest rates possibly twice this year and it is easier to understand why the Pound has made inroads against the AUD of late, despite investors remaining cautious about the Pound and its future prospects.

If you have an upcoming AUD currency transfer to make, you can contact me directly on 01494 787 478. We can help guide you through this turbulent market and as a company we have over nineteen years’ experience, in helping our clients achieve the very best exchange rates on any given market.

Our award winning rates can be accessed very easily over the phone and I can keep you posted with key market developments ahead of any prospective exchange you need to make.

Feel free to email me directly on mtv@currencies.co.uk to find out all the options available to you ahead of your currency transfer.

 

AUD Forecast – Australian Economic Output Continues to Heap Pressure on the AUD (Matthew Vassallo)

The AUD has been under growing pressure of late, with the Pound finding plenty of support above 1.85.

Australia’s economy remains stagnated, with concerns over global trade and uninspiring growth figures, handicapping any sustainable advances for the AUD.

This period of relative economic downturn is causing investors to shy away from the AUD, which like all commodity-based currencies is struggling to maintain its levels, due to investors risk appetite being minimal.

Yesterday’s Gross Domestic Product (GDP) figures, along with last night’s Retail Sales figures are likely to reinforce this negative undertone, although the silver lining for those clients holding AUD is that the poor figures have not yet caused the AUD to slip further against GBP.  GDP figures showed a drop to 0.2% month on month and whilst Retail Sales data showed an improvement from last month’s reading of -0.4%, they still came out under the markets expected result at 0.1%.

It is no real surprise then that the Reserve Bank of Australia continue to hold interest rates at their record lows of 1.5%. This is also causing the AUD to be less attractive to investors, who in years gone by would have looked at Australia’s previously high interest rates as an opportunity for a high yielding return on their funds.

Whilst the current climate is hardly like to inspire longer-term confidence in the Australian economy, things could be set to get wore before they get better.

One of Australia’s largest banks Westpac recently release their economic forecast for the rest of the year, in which they predicted the RBA would cut interest rates again, possibly twice by November. If this scenario comes to fruition, interest rate should fall to new record lows of 1%. This in turn will likely have negative ramifications for the AUD.

Whilst the UK continues to try and find some common ground with the EU in regards to the Irish backstop arrangement, as of yet, no breakthrough has been made. With the second “meaningful vote” fast approaching, UK Prime Minister Theresa May is running out of time to push through the amendments she will need, in order to convince parliament to vote in favour of her Brexit deal.

The markets focus will remain firmly on the UK ahead the current Brexit deadline of March 29th but any breakthrough in talks with the EU and a positive outcome to next week’s vote, is likely to drive investor confidence in the Pound and a move up to and even through 1.90 is certainly a feasible outcome.

If you have an upcoming AUD currency transfer to make, you can contact me directly on 01494 787 478. We can help guide you through this turbulent market and as a company, we have over nineteen years’ experience in helping our clients extract the most from any given market.

Our award winning rates can be accessed very easily over the phone and I can keep you posted with key market developments ahead of any prospective exchange you need to make.

Feel free to email me directly on mtv@currencies.co.uk to find out all the options available to you ahead of your currency transfer.

AUD Forecast – Will GBP/AUD Rates Reach 1.90 Over the Coming Days? (Matthew Vassallo)

The Pound has seen its value steadily rise against the AUD over the course of the trading week, moving back above 1.87 at the high overnight.

Whilst the AUD has found some support today around the current levels, the long-term outlook for the Australian economy remains dovish to say the least. Westpac, one of Australia’s largest banks has predicted further interest rate cuts by the Reserve Bank of Australia (RBA) this year.

With interest rates already set at record lows of 1.5%, any further decreases are likely to add to the growing sense that the Australian economy is set for a period of stagnation.

Add to this the prospect of Brexit talks finally moving yielding some kind of positive outcome, and it’s conceivable to imagine the Pound making further inroads back above 1.90.

Whilst the current outlook may seem more favourable for Sterling, the current optimism is based on Brexit talks actually yielding a positive outcome ahead of the second “meaningful” vote. This is scheduled to take place by March 12th and it will give UK MP’s the chance to vote on any amendments to UK PM Theresa May’s original Brexit withdrawal agreement with the EU.

Should the PM manage to negotiate any amendments, they would almost certainly have to include some type of concessions from the EU regarding the current Irish backstop arrangement. Many of the MP’s who voted against the PM’s initial deal in the House of Commons have stated that this is the key issue that needs to be resolved.  Therefore any softening the EU’s stance on this contentious issue, could bring it with renewed optimism that a deal can be reached by the current deadline of March 29th.

Needless to say any failure on her part to do so, will likely end the chances of a deal being agreed by the end of March and a different approach will have to be adopted. The EU would then have to grant an extension to the current deadline in order to help facilitate further talks, which will hopefully then lead to a positive outcome.

If you have an upcoming GBP or AUD currency transfer to make, you can contact me directly on 01494 787 478. We can help guide you through this turbulent market and as a company we have over nineteen years’ experience, in helping our clients achieve the very best exchange rates on any given market.

Our award winning rates can be accessed very easily over the phone and I can keep you posted with key market developments ahead of any prospective exchange you need to make.

Feel free to email me directly on mtv@currencies.co.uk to find out all the options available to you ahead of your currency transfer.

AUD Forecast – What are the Current Factors Affecting GBP/AUD Rates? (Matthew Vassallo)

The AUD has seen its value slip against the Pound over the past week, falling back below the key threshold of 1.80.

GBP/EUR rates were trading above 1.82 yesterday and despite the AUD finding some support around this level, it has yet to threaten any significant realignment against the Pound.

As regular readers will know, much of the current market sentiment and ultimately investors risk appetite on GBP/AUD, is being driven by the prospect of a no-deal Brexit with the EU. Whilst the UK government and Brussels are yet to agree upon the final transition, there is still hope that a deal will be in place prior to the deadline of March 29th, the date by which the UK must exit the single bloc.

Whilst Brexit uncertainty has proved a major handicap for the Pound for a prolonged period, it is also likely to have helped to support the AUD, at least to some extent, during a period of deep economic instability for the Australian economy. In fact, due to the major slowdown in global trade, brought about partly because of the escalating trade stand-off between the US & China, the AUD could have expected heavier losses against GBP, than it has experienced up until this juncture.

The AUD, like all commodity-based currencies, relies heavily on a buoyant global market to proper. In years gone by it has always been considered a riskier asset, which in times of global growth can bring about quick returns due to the generally bigger market swings and at one point higher yields due to an attractive interest rate.

Of course, the flip side brings with the potential of heavy losses and with interest rates now at record lows for a prolonged period, the AUD is not as an attractive propositions as it once was for investors.

If the UK and EU to agree upon a Brexit deal over the coming weeks, then the market spike could be favourable for the Pound. I would anticipate that the AUD could see heavy losses in the short-term, with a move back above 1.85 likely and the pliability of a run at 1.90 distinct possibility.

If you do have a GBP or AUD currency exchange to make, it is key to try and minimise your market risk in such an uncertain climate. Here at Foreign Currency Direct plc we can help you guide through this turbulent market, providing key insights and up to date market analysis.

We can help you maximize your currency exchange by providing award winning exchange rates and a pro-active approach to currency transfers.

Please feel free to contact me directly on mtv@currencies.co.uk, or alternatively you can call the office on 0044 1494 787 478.

AUD Forecast – Heavy Losses for the AUD Overnight as Interest Rate Hike Looks Extremely Unlikely (Matthew Vassallo)

The Pound has made significant gains against the AUD overnight, gaining almost three cents.

It currently trading at 1.8176, having been marooned below 1.79 during the early part of the trading week.

What’s surprising is that this improvement has come about despite the on-going uncertainty surrounding the UK’s impending Brexit, with talks between the UK and EU once again seemingly at an impasse.

This indicates that last night’s heavy losses for the AUD were linked to a sharp drop in investor confidence in the AUD, rather than any major influx into the Pound.

This means those clients holding GBP and looking to buy AUD have been given a window of opportunity, which equates to an additional 3000 AUD on a 100k GBP/AUD currency exchange.

The reason the AUD lost significant value is likely linked to comments made overnight by the governor of the Reserve Bank of Australia (RBA) Philip Lowe, who indicated that the central bank were unlikely to raise interest rates anytime soon, meaning that they will likely be kept at record lows for the foreseeable future.

The Australian economy was already under pressure due to the current trade standoff between the US and China. With no long-term solution in sight, despite rumours that President Trump will meet his Chinese counterpart Xi Jinping this month, the outlook for the AUD does not look overly positive.

Australia relies heavily on trade with China and with China’s demand slowing, this will inevitably have a negative impact on the Australian economy and ultimately the AUD.

With a slowdown in global growth also impacting commodity-based currencies such as the AUD, how GBP/AUD rates will evolve over the coming weeks and beyond, will depend much on whether or not the UK can ultimately agree a Brexit deal with the EU.

If the UK fails to do this, then the AUD is likely to be inadvertently boosted by a sell-off of GBP positons.

If you have an upcoming AUD currency transfer to make, you can contact me directly on 01494 787 478. We can help guide you through this turbulent market and as a company we have over eighteen years’ experience, in helping our clients achieve the very best exchange rates on any given market.

Our award winning rates can be accessed very easily over the phone and I can keep you posted with key market developments ahead of any prospective exchange you need to make.

Feel free to email me directly on mtv@currencies.co.uk to find out all the options available to you ahead of your currency transfer.

GBP/AUD Rates Retract as Fears of No-Deal Brexit Gather Pace Once Again (Matthew Vassallo)

GBP/AUD rates have dropped by over a cent overnight, with the Pound losing support following parliaments decision to vote in favour of the Brady amendment.

Sterling hit a low of 1.8155, with investors selling off their GBP positions amid fears of what last night’s House of Commons vote could mean for Brexit.

MP’s voted in favour of an amendment to Prime Minster Theresa May’s Brexit deal by 317 votes to 301. This means that they will ultimately back a deal if the PM can negotiate changes to the much maligned Irish backstop. She has pledged to return to parliament with a deal to be voted on by February 13th, as long as the EU are willing to make the necessary concessions.

This however, is the key point and possibly why the Pound saw its value slip against the AUD since the vote was passed. The EU have made it abundantly clear that they are not prepared to renegotiate the terms of the Brexit deal, in particular removing the agreed Irish backstop.

Whether this is ultimately true, or they are playing hardball in terms of their negotiation tactics is now the question investors will be asking themselves.

Based on last night drop in value for the Pound, they are obviously not overly confident in an agreement being reached and if this ends up being the case, then a no-deal scenario once again becomes the most likely outcome.

This is seemingly what the markets fear most and are seemingly preparing themselves for this eventuality.

Looking at the AUD and it likely last night’s rise in value had far more to do with a dip in confidence for the Pound, rather than a spike in value for the AUD. The Australian economy continues to feel the pinch from a slowdown in Chinese economic growth and thus a fall in demand for Australia’s raw materials. Being Australia’s largest trade partner, any slowdown in China will inevitably have a negative knock on effect for the Australian economy and ultimately the AUD.

Add to this concerns over a slowdown in global trade, something the AUD and all commodity-based currencies fear and it is likely that the short-term trend on GBP/AUD rates will be dictated by investors’ confidence or lack of it, in the on-going Brexit negotiations.

If you have an upcoming GBP or AUD currency transfer to make, you can contact me directly on 01494 787 478. We can help guide you through this turbulent market and as a company we have over eighteen years’ experience, in helping our clients achieve the very best exchange rates on any given market.

Our award winning rates can be accessed very easily over the phone and I can keep you posted with key market developments ahead of any prospective exchange you need to make.

Feel free to email me directly on mtv@currencies.co.uk to find out all the options available to you ahead of your currency transfer.

 

AUD Forecast – What are the Factors Driving GBP/AUD Exchange Rates? (Matthew Vassallo)

GBP/AUD rates have dipped slightly during Thursday’s trading, with the AUD continuing to find support around the current levels.

The pair fell to a low of 1.8338, having been trading above 1.84 at its high over night.

The Pound has failed to make any sustained inroads against the AUD since the weekend, after premature talk of a Brexit agreement caused a sharp sell-off of GBP positions on Sunday.

This put the Pound on the back foot when trading lines opened on Monday. It has been a tough week for Sterling, which has seen its value decrease by around three cents, or the equivalent of 3000 AUD on 100k GBP/AUD currency exchange.

I anticipate that the AUD will now find plenty of support again around 1.85, when it seemed as though the Pound was set for a run on 1.90 last week, when a Brexit deal looked imminent.

This is another prime example of how the markets may price in an expected political outcome, only to see the currency in questions value diminish when the expected result does now come to fruition.

Looking at the driving factors behind GBP/AUD and any updates or breakthrough in Brexit talks, will no doubt boost investor confidence and the Pound is likely to benefit as a result. Similarly any talk of a no-deal outcome again and it will likely have the opposite e effect.

Looking at the Australian economy and current slowdown in global trade is certainly having a negative impact. This, along with the current trade war between the US & China is causing investors to shy away from riskier currencies such as the AUD. We generally see commodity-based currencies such as the AUD lose value during times of global economic uncertainty.

If you have an upcoming AUD currency transfer to make, you can contact me directly on 01494 787 478. We can help guide you through this turbulent market and as a company we have over eighteen years’ experience, in helping our clients achieve the very best exchange rates on any given market.

Our award winning rates can be accessed very easily over the phone and I can keep you posted with key market developments ahead of any prospective exchange you need to make.

Feel free to email me directly on mtv@currencies.co.uk to find out all the options available to you ahead of your currency transfer.