Tag Archives: bank of england

GBPAUD struggles to maintain recent form

The GBPAUD exchange rate has slipped lower from the highs of 1.69 and 1.70 fairly recently as investor concerns over the outlook for the UK to raise interest rates increase. Yesterday was the latest Inflation data for the UK and today is Unemployment data where we will get the latest news on Wage Inflation. A big driver on GBPAUD rates this week is how the market reacts to the prospect of the UK raising interest rates which now looks less likely.

Overall the Australian dollar has been stronger against sterling after investors retain an interest in the higher yielding Australian dollar which represents a very good opportunity to earn a higher yield on their investments. The big news on the Australian dollar will be the Unemployment data which is released tomorrow evening and could see the Aussie even stronger against the pound.

If you have a transfer buying or selling the Australian dollar then making some plans in advance is key to understanding the current trends and themes in the market. With there being a high chance the pound will lose further value GBPAUD rates could be well worth considering if you have to buy Australian dollars with pounds.

We are currently at some of the better rates of this year, the worst deals were in the 1.50’s so with 1.70 only a couple of cents away and the forecast in my opinion pointing downwards say to the mid or lower 1.60’s, I think if you are buying Australian dollars moving sooner would be the best course of action.

For AUD sellers buying pounds the market remains very favourable so if you have a transfer to consider buying or selling please don’t hesitate to get in touch and discuss further the market and how we can help you. Please email jmw@currencies.co.uk for further information.

Fall in Iron Ore Price could have ramifications for the Australlian Dollar (Daniel Johnson)

Iron Ore drops in value

Iron ore is Australia’s primary export and as such fluctuations in it’s value effect the value of the Australian Dollar. Over the past few weeks we have seen a significant fall in iron ore price. Despite this the Aussie has remained resilient against the pound. This is not to say it is not concerning, the absence of a large drop in Australian dollar value could be attributed to Sterling weakness due to the uncertainty surrounding Brexit.

RBA Meeting’s Minutes

During the early hours of tomorrow morning we will see the Reserve Bank of Australia (RBA) minutes. The minutes are released two weeks  after the interest rate decision and can give an indication as to monetary policy moving forward. If there is any hint to a raise in rates expect investors to react and we could see a significant spike in AUD value, as we witnessed recently when Mark Carney, the governor of the Bank of England when he hinted hint towards a hike for the UK in November and GBP/AUD breached 1.70.

I would be surprised if this occurred however, I expect a dovish tone. I do not think the current economic data releases from down under warrant a hike. Retail sales data recently came in at a four year low.

If you are looking at the health of the UK’s and Australia’s economies, I think Australia is in a much better situation at present. Political uncertainty and a lack of clarity on Brexit is hindering any advances made by Sterling.

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.

 

 

Busy day for GBP/AUD exchange rate, can we expect to see similar volatility moving forward? (Joseph Wright)

The Pound has been trading in a volatile fashion today as a number of headlines have resulted in Sterling movement.

Although there is no major data set for release out of the UK this week, and there was little released today by the way, I wouldn’t be surprised to see the Pound move further as Brexit talks appear to be heating up.

This afternoon we saw the Pound sold off as it appeared that Brexit Secretary David Davis has a different opinion to his European counterparts regarding how Brexit negotiations are going. The International Monetary Fund’s Managing Director, Christine Lagarde today also threw her hat into the mix and stated that there needs to be more clarity regarding the Brexit, and that a ‘No Deal’ Brexit is unimaginable.

The downward trend has since reversed for the Pound as in the last 30 minutes or so its been reported that Michel Barnier, the European Chief Negotiator for Brexit has stated that the EU could offer the UK a 2-year transition stay in the EU market after Brexit.

In a market like this its very difficult to judge which way the market will move, but working on a trading floor means that we’re able to react quickly to the sudden moves.

Today’s price movement has been over 1.25% which on large currency transfers can equate to a substantial amount of money, which is where timing your transfers can really make the difference.

There are no major announcements out of Australia either this week, so I expect the pair to continue to be driven by sentiment with today’s trading session being a clear example of how comments from significant personnel can move the markets.

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.

Further falls for the Australian dollar (Dayle Littlejohn)

Many economists globally are expecting the Australian dollar to come under further pressure for the rest of the year as the US begin to reverse the bad run seen over the last 6 months. It’s been widely publicized that the Federal Reserve are likely to raise interest rates in December. If this materializes the overpriced Australian dollar is likely to devalue as currency speculators move out of the risky commodity currency and into the safe haven US dollar for higher returns on their investments.

In regards to GBPAUD exchange rates the pound has been losing momentum against the Australian dollar over the last 5 trading days as yearly GDP numbers fell to 1.5% from 1.7%, mortgage approvals were down by 3,000, markit manufacturing fell from 56.9 to 55.9 and PMI construction fell from 51.1 to 48.1. However the Bank of England are suggesting an interest rate hike could occur as early as next month which could provide further opportunity for Austrian dollar buyers.

This evening Australia are set to release retail sales numbers, trade balance, including import and export numbers and RBA assistant Governor Debelle’s speech. For more information on how these data releases impacted the market feel free to drop me an email and I will respond tomorrow morning.

If you need to buy or sell Australian dollars and would like to save as much money as possible, feel free to email me with your requirements and I will respond with the process of using our company drl@currencies.co.uk. As a company we pride ourselves in the ability to get you a better exchange rate than your current currency provider or your bank. In addition we can outline your options and the potential future events, which will impact your exchange rate. This will help you to make informed and educated decisions.

 

 

Will GBPAUD continue to rise this month?

The pound made considerable gains against the Australian dollar throughout September due to the Bank of England’s stance surrounding future interest rates and the dovish stance from the Reserve Bank of Australia.

Governor of the Bank of England Mark Carney announced that an interest rate hike could occur as early as November and currency speculators have purchased the pound in anticipation.

Governor of the Reserve Bank of Australian Philip Lowe confirmed that an interest rate hike anytime soon is unlikely as they do not want to see household debt rise further.

In other news iron ore prices in Austrian have been taking a tumble in recent weeks. Iron ore is Australia’s largest export and when iron ore prices fall this tends to mean the Austrian dollar follows suit. If iron ore continues to decline I expect buying Austrian dollars will become cheaper in the upcoming weeks.

Another factor that will have a major impact on GBPAUD exchange rates is Brexit developments. Currently Brexit negotiations have stalled once again as UK and EU negotiations cannot come to an agreement in regard to the divorce settlement or EU citizens rights once the UK depart the EU. This could be a story that has a positive or negative impact on the pound.

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! **

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

We have seen the Pound consistently challenge levels of 1.70-1.71 in the last fortnight with the Pound clearly finding support vs the Australian Dollar.

The UK economic data announced during September was generally speaking very positive and this has been reflected in GBPAUD exchange rates.

UK inflation has hit a 5 year high recently and this has caused the Bank of England to consider raising interest rates sooner than the market previously had expected.

Typically if inflation rises then a central bank will hike rates in order to control the problem.

However, with UK average earnings falling behind inflation then in my opinion I think an interest rate hike could cause a problem for economic growth in the future.

The Reserve Bank of Australia are due to meet on Tuesday to announce their latest interest rate decision and at the moment I think the RBA will keep rates on hold but each meeting for the last few months has caused a lot of movement for GBPAUD exchange rates.

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 soon as I can.

Pound makes gains vs the Australian Dollar on interest rate hike rumours (Tom Holian)

The Pound has made some solid gains during the last fortnight vs the Australian Dollar creating some better opportunities to buy Australian Dollars with Pounds.

The Pound has gained owing to the suggestion that the Bank of England are making plans for a potential interest rate hike in November. It is not just against the Australian Dollar but also against a whole host of other major currencies in Sterling’s favour.

We have broken through 1.70 on the Interbank level on a number of occasions and it appears as though there is a level of support just underneath this trading level.

The next potential catalyst for GBPAUD exchange rate movement is likely to come on Tuesday when the Reserve Bank of Australia meets to announce their latest monetary policy.

I don’t think we’ll see any movement in interest rates next week in Australia but with the US likely to raise rates before the end of the year as well as the UK potentially doing something in a few weeks there is a chance that we’ll see an interest rate hike in Australia next year.

In the meantime I expect to see the Pound continue to challenge the current 1.71 range and possibly break through as we go into next month.

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 soon as I can.

Is the Aussie Dollars bullish run coming to an end? (Joseph Wright)

The Pound is continuing its recovery against the Aussie Dollar, with the rate rising above the 1.70 mark once again and this time almost hitting 1.72 at its highest point during today’s trading session.

I believe this change in direction for the pair can be put down to both Sterling strength as the pound is also putting in some strong performance against other major currency pairs. This is likely due to Brexit headlines and uncertainties not being in the spotlight which has been a welcome change for those hoping to exchange their Pounds at more competitive levels.

The upward movement for GBP/AUD has also been aided by the weakening Aussie Dollar which had previously been one of the strongest performers of the year.

The drop in the Aussie dollars value can be put down to a slowdown in Chinese growth, falling commodity prices such a iron ore which is key for AUD, and also talk of the Reserve Bank of Australia not planning on hiking interest rates until 2019 which is in start contrast to the Bank of England who have alluded to hike as soon as next month.

Tomorrow morning there will be a key data release out of the UK as UK GDP will be released around 9.30am. If this figure deviates from the expectation we could see further movement, so feel free to get in touch with me if you wish to be kept updated regarding this release.

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.

When will the RBA raise rates? (and how will this affect the pound to Aussie rate)

The pound to Australian dollar has become more comfortable above 1.70 lately but we are still having trouble sticking above it. My personal belief is that the pound to Australian dollar rate will rise higher through the 1.70’s as the lack of any interest rate cut down under, and the increased prospect of one in the UK, causes the rate to rise. I therefore think it could be many years before we see a rate hike in Australia and agree with some more recent commentators who state it will be 2019 not 2018 before we see the next hike.

The Australian dollar is already weaker as markets agree that any hike next year is less likely, the strength in growth and employment in the Australian economy is high but many question for how long it will last. With savings rates having dwindled in recent years Australians are having to save even more and this will impact consumer spending. The very strong housing market is a cause for concern but raising interest rates won’t necessarily help the boom, but it will make getting on the ladder even trickier for new home buyers and make mortgages more expensive.

Whilst I do not think the UK will raise rates as quick as many expect (some pencil in November) I do expected much increased rhetoric around the topic over the next couple of months and this could well send sterling higher. If you are looking to buy or sell Australian dollars this shift will not occur in a straight line, we will undoubtedly see a rather volatile path.

GBPAUD could easily rise to say 1.76 or 1.80 at the top end in the next two months before as UK rates expectations cool and the prospect of any Australian hikes become clearer, see the rate back into the lower 1.70’s or even sub 1.70 again.

If you need to buy or sell Australian dollars for pounds and wish to get some insight into market movements and strategy to maximise your currency exchange we can help with a personal service and excellent rates. 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 and discussing your situation.

Will Theresa May strengthen the pound against the Australian dollar?

This Friday UK Prime Minister Theresa May is set to deliver a life after Brexit speech and economists are predicting a volatile day for sterling vs Australian dollar exchange rates. An EU official has stated that she has an important intervention to make however has made no further comment.

Rumours are suggesting that the Prime Minister may back track from comments made by her fellow peers within the Conservative party and actually state the UK will be paying the EU an amount of euros to depart. If this is the case I expect the pound to rally against the Australian dollar as the UK are one step closer to negotiating a trade deal with the bloc.

However if the rumours are not true and she exclaims that the UK and EU are struggling to come to an agreement then this could lead to a major sell off of sterling and the recent gains for Australian dollar buyers could diminish. Personally if I were buying Australian dollars if we see a shift above 1.70 I would seriously be tempted to take advantage before the pound finds itself under pressure again when Brexit negotiations begin towards the end of the month.

If you are buying or selling Australian dollars in the future, I would strongly recommend getting in contact to discuss your situation. The company I work offers a proactive service to offering economic information whilst having the ability to offer award winning exchange rates. Feel free to email me with your requirements along with the timescales you are working to and I will respond with my forecast and the process of using our company drl@currencies.co.uk.

** IF YOU ARE ALREADY USING A BROKERAGE TO BUY YOUR CURRENCY IT WILL TAKE TWO MINUTES TO EMAIL FOR A COMPARISON AND I AM CONFIDENT I WILL BEAT ANY PRICE YOU ARE CURRENTLY RECEIVING  **