Tag Archives: Brexit

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.

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! **

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.

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  **

Could the Pound hit 1.70 against the Australian Dollar this week? (Tom Holian)

The Pound vs the Australian Dollar has been flirting with rates of just up to 1.70 before hitting resistance levels and falling. The Pound has made some strong and consistent gains vs the Australian Dollar especially during last week after a number of positive UK data releases.

UK Retail Sales are due for release in the morning and if the figures come out better than expected we could see GBPAUD exchange rates trending towards 1.70 during tomorrow’s trading session.

On Wednesday evening the US Federal Reserve are due to meet to announce their latest interest rate decision. The expectation is for no change but the accompanying rhetoric could cause GBPAUD rates to move depending on whether the Fed mention that another rate hike may be coming.

With Theresa May due to speak in Florence on Friday about her plans for Brexit we could see a lot of volatility and it is not clear how the markets may react.

Ultimately the Brexit issue is keeping GBPAUD exchange rates under a lot of pressure and until we get a clearer path as to how Britain’s future may look we could see a difficult time ahead for Sterling 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 to Aussie Dollar rate hits an 8-week high after Bank of England hints at a rate hike, will this upward trend continue? (Joseph Wright)

The Pound rose sharply today against all major currency pairs after comments from the governor of the Bank of England buoyed the markets.

Up until lunchtime today it had appeared that the Bank of England hadn’t planned on hiking interest rates in the UK until 2019, but that changed this afternoon after a number of comments from Mark Carney (the governor of the Bank of England) hit the financial headlines.

After a higher than expected inflation figure earlier this week, the Pound had climbed slightly on hopes that the BoE would act sooner, and today those hopes materialised which is why we’re seeing the Pound climb so steeply.

Generally speaking, an interest rate hike is considered a positive for the underlying currency in question, hence the sharp rise as the markets mere mostly shocked.

Carney stated that the possibility of a rate hike has increased, and that rates may need to be adjusted in the coming months. He also stated that that he was among the majority of the Monetary Policy Committee members that believe some withdrawal of monetary stimulus will be needed in the coming months.

With comments such as these I expect to see the Pound continue to climb from its current levels, especially if they continue and the rate hikes are carried out.

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.

Bank of England to dictate GBPAUD exchange rates tomorrow

Earlier in the week UK inflation numbers gave support for the pound and GPBAUD exchange rates has increased 4 cents in the last couple of weeks. To put this into monetary terms a 200,000 Australian dollar purchase is now £3,000 cheaper.

Tomorrow the Bank of England will release their latest interest rate decision and I expect this decision to dictate exchange rates for the remainder of the week. Even though inflation numbers now sit at 2.9% I don’t expect the Bank of England to hint towards a future interest rate hike and if anything I expect the Governor of the Bank of England Mark Carney to talk down the pound.

In recent months Mark Carney has insisted that monetary policy will be dictated by developments coming from Brexit. At present UK and EU negotiators cant find common ground in regards to how much the UK will pay to leave the EU and EU citizens rights therefore this is my reasoning why I dont expect this event to help the pounds value.

Short term Australian dollar buyers may wish to purchase there currency at some point tomorrow morning. 

The currency company I work for has won numerous awards for exchange rates therefore it enables me to trade Australian dollars at rates better than other brokerages and high street banks. I would recommend sending an email with a brief description of your requirements and your timescales (this is very important, the length of time you have will change your options) and I will email you with my strategy and the process of using our company drl@currencies.co.uk. Alternatively if you would like to discuss your requirements over the phone call 0044 1494-787478 and ask to be put through to Dayle Littlejohn.

GBP/AUD – Australian Dollar Strength could spell trouble for exports (Daniel Johnson)

Positive Data from down under could warrant rate hike

The Australian economy has been performing well of late with strong economic data in abundance. We recently saw a release of manufacturing data which showed the highest levels since 2002.  I has been a volatile time due to the recent Nuclear missile test by North Korea over Japan with investors seeking out safe haven currencies due to the threat of conflict.

Poor non-farm payrolls data from the US caused many to leave the greenback, moving to the Aussie with increased risk appetite and the promise of higher returns. With strong economic data out of Australia it could be argued an interest rate hike is on the cards. Philip Lowe however, The head of the Reserve Bank of Australia (RBA) is nervous of the Australian Dollar becoming too strong. Australia is heavily reliant on the Chinese buying it’s raw materiel, particularly iron ore. Iron ore is Australia’s biggest export and has seen a rise in value of late. If goods become to expensive sue to the value of the Aussie this could force the Chinese to look elsewhere. I would imagine the RBA will attempt to talk down the value of the currency through jawboning rather than any drastic changes to monetary policy. Jawboning is a very difficult technique and savvy investors do not always take central banker’s words as gospel.

The pound is in a terrible spot at present. There are two key factor anchoring Sterling. First, political uncertainty. Political uncertainty historically weakens the currency in question and this is what we are witnessing with the pound. With Theresa Mays’s position in doubt due to threats from her own party the pound has little chance of recovery. Next up, Brexit, there is no clarity on the UK’s stance and there is conflict between UK negotiators and Brussels over payment of the proposed exit bill. Bad news is better than no news on the currency market which is why GBP/AUD still sits in the low 1.60s.

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 outlook is so bleak for the pound . If you let me know the details of your trade I will endeavor 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.

Sterling Strengthens against AUD on an increase in mortgage approvals (Daniel Johnson)

Mortgage Approvals cause Sterling spike

Yesterday saw the release of UK mortgage approvals data for July which came in above expectations, this was coupled with poor building approvals from down under. Worryingly  however UK house prices have fallen and may continue to do so should inflation remain at high levels and average wage growth continues to lag behind.

The fall in building permit figures is significant down under as in order for the Reserve Bank of Australia (RBA) to justify a hike in interest rates there needs growth in this area.

Iron Ore is Australia’s main export, in high demand from Australia’s biggest trading partner, China. We have seen rapid rises in iron or of late which has benefited the Aussie. However, yesterday saw a small decline and this was another catalyst for Australian Dollar weakness.

Despite this positive data from the UK and negatives from Australia, I am doubtful Sterling’s rally will continue. There are two main factors that need to be addressed in order for Sterling strengthen significantly. We need clarification on Brexit and a stable government.

Political uncertainty historically weakens the currency in question. There are currently a growing number of conservative MPs putting forward a vote of no confidence in Theresa May. She either needs support to be ousted and  replaced quickly if the pound has any chance of significant gains.

The white papers that are being released outlining the UK’s aims in negotiations to leave the EU are only documenting small issues at present and none so far are significant enough to move the markets. The big issues on trade and immigration need to be addressed to provide more clarity to investors.

If you have a currency requirement I would b happy to assist. You need to have an experienced broker on board in order to take advantage of rates when a brief spike occurs, especially in the current climate. If you have a currency provider already in place I am prepared to perform a comparison against them. It will take minutes and could potentially save you hundreds or even thousands of pounds. I can be contacted at  dcj@currencies.co.uk.

Will Brexit uncertainty continue to push GBP/AUD lower, and will we see trade levels below 1.60 again this year? (Joseph Wright)

Economists appear to be concerned by the almost daily dropping of the Pound, as uncertainty surrounding the terms of the Brexit deal are putting alot of pressure on the Pounds value.

Many are predicting that the pound will be trading lower into 2018 than current levels, and although this blog is focused predominantly on the GBP/AUD exchange rate I think it’s useful for our readers to know that many major institutions are predicting that the Pound will fall below parity against the Euro for the first time in 2018.

Interestingly earlier this week the National Australian Bank predicted that the Australian Dollar will actually lose value against the Pound between now and the end of the year, although only marginally.

This prediction appears to buck the trend of general negative outlooks surrounding the pound as concerns over the UK economy as we enter Brexit are generally outweighing other factors.

This weekend there could be movement for the Pound to Aussie Dollar exchange rate as a number of key financial figures such as US Fed Chairlady Janet Yellen and European Central Bank president Mario Draghi will be speaking Jackson Hole central banking conference. This will be happening out of hours so expect any major announcements to impact the rates perhaps late tonight or when markets open next week.

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.