Tag Archives: currency broker

How long will this period of Australian dollar strength against sterling?

My recent article this weekend suggested that there was a possibility that GBPAUD could reach 1.80 in the upcoming weeks and until late yesterday afternoon this prediction looked very likely. However the DUP at the close of business yesterday evening announced they are unhappy that UK Prime Minister could offer a different border control for Northern Ireland compared to the rest of the UK. Off the back of the news the pound lost ground against all of the G10 currencies and the Australian dollar.

Later that evening, the Reserve Bank of Australia held interest rates at 1.5%, which was no surprise, however surprisingly the Reserve Bank of Australia’s commentary was extremely positive which strengthened the Australian dollar further against the pound. With the amount of strength we have seen for the Aussie rumors the Reserve Bank of Australia may appear to be backtracking and actually could raise interest rates early next year. If this is the case, it’s quite clear that the RBA have been jawboning in an attempt

However, I’m still of the opinion that the UK will secure some kind of deal in the upcoming weeks with the EU which will mean trade negotiations will begin in the New Year. If this is the case this period of strength for the Australian dollar against sterling could be short lived therefore I would recommend any client converting Australian dollars into sterling should look to make arrangements sooner rather than later.

If you are converting pounds into Australian dollars as you are emigrating or if you are leaving Australia to move to the UK and need to buy pounds in the upcoming weeks, months or years feel free to email me with the 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! **

Pound to Australian Dollar rate hits a 5-month high, will the upward trend continue? (Joseph Wright)

Those following the GBP/AUD rate will be aware of the positive moves for the Pound recently, and within the past 24 hours the rate has hit a 5-month high making it a good time for Sterling sellers.

The rate has traded within just 2 and a half cents of the best levels in the last year, so the questions are now being asked as to whether the pair can reach a new 1-year high.

Those with a currency requirement involving the pair should be aware that the Pound isn’t trading in such a strong fashion against many other major currency pairs, and that in my opinion there is potential for the Pound to fall for a number of reasons.

The UK Prime Minister, Theresa May is currently under pressure as rumours build that there a a number of members of her party prepared to sign a vote of no-confidence regarding her position. Should this issue surface I would personally expect to see the Pound fall quite dramatically against the Aussie Dollar amongst other major currencies.

At the same time inflation hasn’t quite hit the high levels the Bank of England was expecting to see so the chances of future rate hikes have diminished somewhat, certainty regarding the short term future.

If you’re following the GBP/AUD rate and would like to be kept updated to any major swings in the rate, do feel free to register your interest with me.

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 the Pound improve against the Australian Dollar next week? (Tom Holian)

As predicted in my previous articles the Pound has shaken off the problems against the Australian Dollar following last week’s interest rate decision which saw the GBPAUD exchange rate move in a downwards direction.

The UK economy has proved once again that it is resilient even though politically we are facing the challenge of the ongoing Brexit uncertainty.

GBPAUD exchange rates are once again moving in the right direction breaking through 1.72 on a couple of occasions already this week.

The Brexit talks appear to be moving in the right direction with Theresa May and Michel Barnier both suggesting that behind the scenes progress is being made.

The real issue surrounding Brexit is what the divorce bill will cost and when it will be paid which is one of the sticking points of the discussions.

We have a very eventful week ahead with the release of a number of different economic data due over the next few days.

UK Inflation is due out on Tuesday and this has been a big factor in the recent decision by the Bank of England to raise interest rates earlier this month. Therefore, this could also cause a lot of volatility for GBPAUD exchange rates.

Also, next week is the release of UK unemployment data and with the jobs data performing very well during 2017 I think we could see GBPAUD rates improve by the middle of next week which could provide a good opportunity to look at buying Australian Dollars with Pounds.

If you have a need to make a currency transfer in the coming days, weeks or months then feel free 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 compared to your bank or another currency broker.

Even a small improvement in the exchange rates can make a big difference so feel free to to email me with details of your requirement and you may find you could save yourself hundreds if not thousands of Pounds. You can email me (Tom Holian) on teh@currencies.co.uk and I will respond to you as soon as I can.

Australian Dollar to Pound exchange rate drops as Australian GDP data disappoints, will there be a reversal of the AUD/GBP trend? (Joseph Wright)

The Australian Dollar has recently strengthened quite considerably against the Pound, although the trend has been reversed this morning after Australian GDP figures failed to impress the markets enough for the bullish run to continue.

During the second quarter of this year the Australian economy grew at a rate of 0.8% which was in line with what economists were expecting, and it appears that the Aussie Dollar will need some more positive data to come out in order for the currency to once again reach its post-Brexit vote highs.

The Pound has been coming under pressure in recent weeks after fears surrounding the final ‘Brexit Bill’ cost have surfaced, as well as uncertainty surrounding how the Brexit negotiations are going so far with some suggesting they have got off to a bad start.

Yesterday data out of the UK showed that the services sector within the UK has hit an 11-month low which is important sector for the UK due to it accounting for around 80% of the UK economy. Despite this negative news the Pound is still climbing against the Aussie Dollar which to me demonstrates that the Aussie Dollar bullish run is potentially coming to an end.

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 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.

Will GBP/AUD return to its March lows and trade in the 1.50’s once again? (Joseph Wright)

Unfortunately for those planning on exchanging Pounds into Australian Dollars in the short term future, the Pound appears to be on track to return to it’s post-Brexit vote lows.

It was back in March when GBP/AUD broke below 1.60 before recovering. The Pound is coming under pressure against most major currency pairs at the moment with just a few exceptions such as the Swiss Franc.

For those with a need to exchange the Pound into Aussie Dollars its worth noting that the Pound hit fresh lows against the Euro during today’s trading session, so if the Pound to Aussie Dollar rate is to follow suite the pair have another 5 or so cents before that happens.

At 11am tomorrow there could be movement between the GBP/AUD pair as an Inflation Report Hearing in the UK will take place, and due to the inflation levels in the UK currently under the microscope due to the fall in the value of the Pound I expect investors to listen closely for hints at future monetary policy in the UK. I wouldn’t completely rule out an interest rate hike this year if need be and talk of one could provide the Pound with a much needed boost.

On Thursday afternoon there will be a GDP estimate figure for the past 3-months to July, and this release comes after a bout of data on Instruction and Manufacturing which could also impact Sterling/Aussie exchange rates should the outcomes deviate greatly from expectations.

If you have an upcoming currency requirement involving the Pound and Aussie Dollar, do feel free to get in touch as I’ll be happy to discuss our commercial exchange rates with you, along with my opinion on potential future price fluctuations. You can email me an outline of your plans to jxw@currencies.co.uk or even provide with a telephone number if you wish to discuss it as soon as possible. 

Sterling climbs against the Aussie Dollar as the RBA warns of strong currency putting pressure on Australian economy (Joseph Wright)

The Pound to Aussie Dollar exchange rate hit 1.66 in the early hours of this morning, and this was the first time in over 2-weeks that we’ve seen the Pound trade this high.

The headline comments from the Reserve Bank of Australia in the early hours came in the form of a warning, saying that the ‘Aussie’s recent strength has been placing pressure on the Australian economy’ and this resulted in the selling off of AUD.

The RBA appears to be fairly neutral in its outlook for future growth after suggesting that forecasts for the Australian economy remain unchanged (currently at 3% annually).

The fall for the Aussie dollar came after data showed that sentiment within the Manufacturing sector strengthened, along with the positive move of 7% increase in the value of Iron Ore which has given AUD a boost.

It appears that the RBA would prefer a weaker Aussie Dollar and I think that those planning on converting Aussie Dollars into Pounds should consider the gains they’ve seen recently, and whether they think the Aussie can continue to strengthen at its current rate.

This Thursday is likely to be a busy day for Sterling exchange rates as a whole and I expect to see the GBP/AUD rate see volatility. Thursday is being billed as ‘Super Thursday’ and if you would like to discuss why in future detail do feel free to get in touch.

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.

 

Pound to Australian Dollar improves despite IMF downgrade, is this a sign that the Pound is oversold? (Joseph Wright)

I wrote last week about how some analysts as well as members of the Reserve Bank of Australia are becoming concerned that the Aussie Dollar is becoming overvalued and higher than it perhaps should be, and I believe we will continue to hear similar commentary in the upcoming months.

Earlier in the year the Pound to Aussie rate hit the mid 1.70’s whereas the pair are now trading closer to 1.50 than 1.60. Since the Brexit the lowest the pair have fallen to is to a mid-market level of 1.59 so i don’t think we can rule out another move to these low levels as we don’t require the GBP/AUD pair to do something they haven’t in recent history.

In the early hours of this morning the Pound started off on the back foot after the International Monetary Fund (IMF) downgraded both the UK and the US growth forecasts for the rest of this year.

Throughout the day though the Pound has climbed, not just against the Aussie but across the board as the Pound as gained against all major currency pairs today.

Despite this boost I think that we could see the Pound trade at lower levels, especially if the UK inflation rate continues to under-perform and the likelihood of a rate hike from the Bank of England continues to dwindle.

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 (Joseph Wright) on jxw@currencies.co.uk and I will endeavour to get back to you as soon as I can.

Reserve Bank of Australia appear unhappy with ‘overvalued’ Australian Dollar, will they take action? (Joseph Wright)

The Aussie Dollar has not only gained a substantial amount of value against the Pound in recent months, but also against most other major currency pairs.

With the Reserve Bank of Australia (RBA) already suggesting that there will be no further interest rate changes this year, they now have the issue of an overvalued currency which is a negative for an economy like Australia’s due to it being so heavily export driven.

The reason the RBA is unlikely to amend the interest rate is due to fears of a heavy impact on the already overheating housing market, as making mortgages easier to come by would most likely cause even further issues for house prices down under and especially on the East coast.

The Australian Dollar is now this year’s best-performing major currency so those looking to exchange AUD into another currency should bear this in mind.

Moving forward I think there’s a chance that we could see members of the RBA attempt to jawbone the currency as they will be looking to keep Aussie exports competitive.

The Pound is coming under pressure as Brexit negotiations take place this week in Brussels, and I think there is always the chance of a update on these which could move the markets.

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 (Joseph Wright) on jxw@currencies.co.uk and I will endeavour to get back to you as soon as I can.

Will GBPAUD rise or fall in the coming weeks?

The Australian is really benefiting from much improved certainty around the outlook on interest rates. Interest rates are a key factor in determining the relative strength and weakness of a currency and this is of vital importance for the Australian dollar. Viewed by investors as a good currency to hold because of the higher interest rates, the Australian dollar will rise in value if investors believe that interest rate will go up in the future. If you are buying Australian dollars the shorter term outlook is not great, it is likely the Aussie will make further gains. If you have a transfer to make buying or selling Australian dollars this information will be vital to the rate in the future.

The Reserve Bank of Australia confirmed that they could well be looking to raise interest rates in the future which has helped the Australian dollar to rise against the pound. The pound is actually much weaker too since Inflation has been falling in the UK at the latest release, this reduces the chance of an interest rate hike. Clients looking to buy or sell Australian dollars for pounds could see GBPAUD test closer to the 1.60 in the next few weeks but longer term it might well recover. Only two weeks ago we were headed to 1.70 so to be where we are now is a surprise in some respects. Events could quickly change again!

News that might help would be the US dollar strengthening again. The USDAUD rate is of real importance to GBPAUD since as USDAUD is the most heavily traded currency pair, the movements on US dollar to Aussie will ‘weigh’ on GBPAUD rates. So for example lately the US dollar has been weakening, this has helped the Aussie to rise which has affected GBPAUD too.

GBPAUD is on the slide but could quickly make a recovery! Every 1 or 2 cents on a big volume of currency can make a difference of thousands so if you have a transfer to consider and wish to get the best rates and help with the timing of any deal please speak to me Jonathan Watson by eamiling jmw@currencies.co.uk.

Thank you for reading and I look forward to hearing from and assisting you.