Tag Archives: currency broker

What factors could cause the Aussie Dollar to weaken? (Joseph Wright)

Last week the Pound found itself under pressure after a raft of bad data out of the UK has resulted in concerns in a slowing down of the UK economy.

Data showed slowdowns in the manufacturing, construction and importantly the services sector and although the readings were in line with previous readings when GDP is running at 0.4%, the economy is slowing as we enter the 3rd quarter which is a negative sign for those hoping the Pound will climb as the year progresses.

The Reserve Bank of Australia disappointed Aussie Dollar bulls and those hoping the Aussie Dollar will climb last week. Many had hoped for indications of future interest rate hikes from the RBA but these comments never came, with many analysts now confident of a rate hike this year.

The price of Iron Ore has firmed up recently offering AUD some support, but the mixed messages the markets are receiving regarding China’s economy (and whether or not the figures they release are 100% truthful) is likely to weigh on the Aussie Dollars value.

The issues surrounding the housing market overheating in parts of Australia is also likely to be a talking point, and it’s quick market movements that we can help our clients take advantage of in a number of different ways, so feel free to get in touch if you wish to discuss this in further detail.

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.

Disappointing data this week results in the Pound weakening, is the UK economy slowing down? (Joseph Wright)

Throughout the week there has been a series of disappointing data releases out of the UK, along with data this morning from Halifax confirming that property prices within the UK have fallen by 1% with UK house price growth falling to a four-year low.

We found out earlier this morning that manufacturing production within the UK fell last month from the month before, whilst industrial production has also fallen on an annual basis.

The construction sector has also experienced a slowdown recently, and with the raft of bad data released this week it may leave many within the marketplace re-evaluating whether there is much of a chance of an interest rate hike this year.

Unicredit (a major Italian lender) this week forecasted a potential spike of up to 4% if there is a rate hike this year, although personally I cannot see this happening irrespective of the UK’s inflation levels and I think that the Pound to Aussie Dollar exchange rate is more likely to fall between now and the end of the year.

There is talk of a slowdown in the Aussie economy also, but with the UK entering such a crucial time with Brexit negotiations I cannot see Australia’s issues overpowering those of the UK.

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.

GBPAUD exchange rates fall to a 8 week low! (Dayle Littlejohn)

Pound vs Australian dollar exchange rates have reached an 8 week low this week due to sterling devaluing and the Australian dollar strengthening. To put this into monetary terms over the last 2 weeks exchange rates have dropped 5 1/2 cents which means a 200,000 Australian dollar purchase is now £3,850 more expensive.

Starting with the Australian dollar GDP numbers have remained resilient this month, and positive business sales growth coupled with increased consumer spending has strengthened the Australian dollar. In addition the Philip Lowe (Governor of the Reserve Bank of Australia) also commented earlier in the week that the global economy is in better shape than previous years which is helping the commodity currencies. This was a surprise statement as iron ore prices continue to remain under pressure due to a slow down in China.

As for the pound the Governor of the Bank of England gave a dovish statement yesterday and confirmed the UK are not in the position to raise interest rates anytime soon even though three members of the Bank of England voted to hike rates only 6 days ago. Furthermore Brexit negotiations have begun and are putting pressure on sterling as the market is nervous about a deal being struck in regards to the divorce settlement.

In my opinion it is impossible to predict how Brexit negotiations will impact the pound. Positive news will strengthen the pound negative will do the opposite. I am optimistic that deal will be struck eventually however other traders on the floor are not. If you are purchasing pounds with Australian dollars or vice versa I would recommend getting in touch and I will keep you up to date with regular information until you are ready to convert drl@currencies.co.uk.

If you are buying or selling Australian dollars in the upcoming months and want to achieve rates of exchange that are better than your bank, whilst receiving regular economic information feel free to email me with the currency pair (AUDGBP, AUDEUR, AUDUSD) the reason for the transfer (company invoice, property purchase) the timescales you are working to and I will respond with my forecast and the process of converting currency. My direct email address is drl@currencies.co.uk and I look forward to receiving your email.

Pound to Aussie Dollar exchange rate falls again, will the downward trend for the Pound continue? (Joseph Wright)

The Pound to Aussie Dollar buying rate dropped again throughout today’s trading session, with the exchange rate dropping by 0.65% throughout the day up until the time of writing.

Not only are the financial markets and investors concerned about the political situation in the UK, with the outcome of the election being one of the worse case scenarios for the UK as it resulted in a Hung Parliament, but the rising rate of Inflation and lower wage growth becoming an issue that could rise to the surface very quickly.

If the rate of inflation continues to climb but the rate of wage growth continues to decline (as figures released today showed it happening for the 3rd month in a row), I think the Pound could find itself trading at a much lower rate than we’re currently witnessing.

My reasoning behind this is because the UK consumer has been propping up the UK economy since the Brexit, which has allowed the ship to steady to an extent after all the warnings from market analysts should the UK pubic have voted to leave the EU.

Should the current trend of higher costs of living in the UK continue I think the Pound may fall as I previously mentioned, and if you would like to be kept updated regarding this matter as well as any others that can potential impact GBP to AUD exchange rates, do feel free to get in touch with me.

There’s a plethora of data due out tomorrow for the UK specifically, so feel free to contact me overnight to discuss these events and how they could impact any short term currency exchange plans you may have.

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 continue to fall against the Australian dollar (Dayle Littlejohn)

In the run up to the UK general election GBPAUD exchange rates remained buoyant around the mid 1.70s which was a surprise to the traders here as the pound was falling across the board against all of the major currencies. I put it down to the Australian dollar weakening due to iron prices and the slow down in China.

Once the general election exit polls were released the pound started to tumble against the Australian dollar and rates continued to fall once it was announced that Theresa May had not won an outright majority. GBPAUD exchange rates have dropped 8 cents since the election result which means if clients are converting 400,000 Australian dollars back to sterling they will receive an additional £10,800.

Looking further ahead I find it difficult to see how the pound will gain any momentum until a government has been formed. At present UK Prime Minister Theresa May is trying to form a minority government with the DUP. Many have questioned the alliance as some of the DUP policies and views seem controversial and not supported by the Conservatives.

Personally I believe a government will be formed in the upcoming days which could provide some stability for the pound. Thereafter Theresa May will turn her attention to Brexit negoations and with the election result a softer Brexit looks more likely which actually improve the pounds value as remaining a part of the single market could actually occur.

For Australian dollars sellers buying sterling, it appears China are going to continue to slow and economists are predicting iron ore prices will follow which will have a negative impact on the Australian dollar. The spike we have seen over the last 5 days may be worth taking advantage of.

If you are trading GBPAUD in the upcoming weeks, months or years and want to save money 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! **

 

Pound to Aussie Dollar hits its lowest level since April as the election approaches, will the trend continue? (Joseph Wright)

The Aussie Dollar bucked the trend today and actually gained value vs the Pound during today’s trading session.

As the election polls have swung back in favour of a Conservative majority the Pound has received a boost against most currencies, as the tightening in the polls over the past few weeks has put pressure upon the Pound as is often the case during times of political uncertainty.

The Aussie Dollar managed to buck the trend as in the early hours of this morning as both quarter-on-quarter as well as year-on-year economic growth figures (GDP) came out better than expected. This data release now means that Australia has recorded 103 successive quarters of growth which is a new global record, making the Aussie Dollar strength understandable.

Despite these figures from down under I am expecting to see the Pound climb further across the board of major currency pairs (including AUD) should the Conservative party win a majority when the election result is announced this Friday.

Another potential downside to the Aussie Dollar is the likelihood of another interest rate hike in the US which would limit demand for investors to hold funds in AUD. AUD has benefited from having such a high interest rate for a nation within the developed world, and should other nations, especially those considered less high risk such as the US, begin offering a similar or higher rate we could see a sell-off in the Aussies value due to selling pressures.

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.

 

Why is the Australian Dollar weakening against the Pound, and will it continue? (Joseph Wright)

The Pound is trading at it’s 2017 high against multiple major currencies at the moment, with the Pound to Australian Dollar sitting at an 8-month high making the conversion of Pounds into Aussie Dollars a much more attractive proposition than it was for much of last year (after the Brexit vote).

The Pound has been slowly climbing since UK PM, Theresa May announced a snap election in June, and as the conservatives gain a more favourable position within the polls we’re seeing the value of sterling continue to climb.

At the same time the commodity currencies such as the Aussie Dollar have been struggling, as commodity prices have tumbled recently which is likely to have a knock on effect to the Aussie Dollars value as the Australian economy is negatively impacted as a result.

Just last week the price of Oil, Iron Ore and Copper all fell by 7% along with Gold which fell by 3%.

Tomorrow is likely to be a busy day for the GBP/AUD pair as a number of key data releases are due out. UK Interest Rates will be announced along with Inflation data and UK GDP, so there could be some major moves tomorrow. Feel free to get in touch if you wish to be kept updated regarding these releases.

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 sour Brexit negotiations continue to weigh on the Pound? (Joseph Wright)

So far this week we’ve seen a very typical pattern of trading for the Pound against the Aussie Dollar.

Political uncertainty has been the main driver of price fluctuations for GBP exchange rates for the past year as the Brexit vote, and subsequent discussions surrounding the process of leaving the EU have continuously weighed on the Pound’s value.

At the same time Sterling has been boosted by impressive economic data during this time which has supported the Pound, so it will be interesting to see which of the two factors have the strongest bearing on GBP/AUD over time.

This week we’ve seen the same pattern continue as the Pound softened earlier this week as over the weekend the tensions between the UK and EU surfaced after the European Commission’s President Jean Claude Juncker commented that UK Prime Minister Theresa May ‘is living in another galaxy’ regarding Brexit negotiations.

Despite the Pound falling in the wake of these comments the currency has since taken a turn for the better as yesterday mornings UK Manufacturing data release came out at its highest level in 3 years. This data showed that sentiment within the UK’s manufacturing sector is going strong at the moment which has been aided by the weaker Pound.

Moving forward I expect data out of the UK to be watched closely as investors will be keen to see how the UK is performing during this crucial two-year period of negotiations.

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 Australian dollar lose value? (Dayle Littlejohn)

Throughout Friday mornings trading session the missile attacks on Syria, sent a worrying message throughout the currency markets and the Australian dollar (a commodity currency) devalued. In times of uncertainty its a common trend for commodity currencies to devalue as they are seen as a risk. A strategy for speculative currency traders is to sell off their positions and purchase ‘safe haven’ currencies such as the US dollar or Swiss Franc. Looking ahead if further unexpected attacks take place in the upcoming weeks I expect the Australian dollar to continue to lose value.

Interest rate cuts on the horizon?

As our regular readers are aware Australia heavily relies on China and Paul Dales Chief Australian and New Zealand economist for Capital economics expects the RBA will make cuts to interest rates before they are hiked as forecasters are predicting a slowdown in China int the near future. This does not surprise me as it appears the monetary policy program has eased which is now not having a positive impact and China’s debt now exceeds 250% of GDP.

Time to sell Australian dollars and buy sterling?

If you are emigrating to the UK from Australia or purchase goods and services from the UK, I believe now is the time to make the purchase. UK Prime Minister Theresa May has brought certainty to the pound by triggering Article 50 and a slow down is on the horizon for China.  Unless Brexit negotiations break down at the first hurdle, present exchange rates could be the best we are going to see for some time.

For readers that are converting Australian dollars into sterling for the first time, if the UK public had not voted out of the EU, exchange rates could have still been close to 2 to 1, which means you would receive 35 cents less. To put this into monetary terms on a 400,000 Australian dollar transfer you would have received over £40,000 less.

Are you needing to buy or sell Australian Dollars in the upcoming weeks, months or years? If you are I can help you save money…

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.

GBP/AUD remains range-bound as the Brexit process begins, where to next for GBP/AUD? (Joseph Wright)

Despite this week being historic for the UK the Pound has remained relatively flat vs the Australian Dollar throughout the week, and at the time of writing the currency has moved less than 1% against the Aussie since the week’s beginning.

I’m of the opinion that the Brexit has been priced into the Pounds value, and I’m not expecting to see another major sell-off in the pound. I made this prediction prior to the UK’s triggering of Article 50 and I think moving forward the only factor that could cause another historic drop like the one we saw last June would be if it becomes public that trade negotiations are going terribly for the UK during this key 2-year period.

Later this morning there will be GDP figures released for the UK, with expectations of 2% annually and 0.7% on a quarterly basis. I think that economic data out of the UK is likely to be watched closely by financial markets due to the UK’s ongoing plans to leave the EU. If you would like to be kept updated regarding key data releases and sharp price movements between the Pound and the Aussie Dollar do feel free to register your details with me and I’ll be happy to keep you updated.

If you are planning to make a currency exchange involving the Pound and another foreign currency, it’s well 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.