Tag Archives: currency requirement

Sterling loses further ground on the Aussie Dollar, will GBP/AUD fall back into the early 1.60’s? (Joseph Wright)

The Pound has fallen across the board of major currency pairs today, after some disappointing Retail Sales figures got the Pound off to a slow start.

The rate of inflation increasing to its highest level in 5-years along with wages struggling to keep up has been in the financial news recently, and applying pressure to the Pounds value.

The negative effects of the reducing purchasing power of the UK consumer is beginning to show, as today’s Retail Sales figures demonstrated that year-on-year sales in the UK retail sector are slowing, and on a monthly basis the figure for sales is now negative.

Many had hoped to see the Bank of England look at hiking interest rates in order to stem the issue, although hopes of a rate hike in early November have fallen this week after the BoE governor Mark Carney was quite dovish in his speech earlier this week.

Personally I think there could be a small hike in November but I don’t expect to see this push the GBP/AUD rate back above 1.70, as the pair have already fallen some distance since hitting last months highs when the rate hike was first discussed by the BoE.

Aside from the above issues I expect to see Brexit negotiations and how they’re unfolding continue to impact GBP rates across the board, and if you would like to be notified if there are any short term price changes for the Pound 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.

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.

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.

Demand for the Australian dollar

In recent years the Australian dollar has seemed to follow trend with the US dollar. In times of uncertainty currency traders would flock to the US dollar due to its safe haven status and leave commodity currencies such as the Australian dollar. With tensions rising on the Korean Peninsula you would expect the Australian dollar to be losing ground against the major currencies as traders lose appetite however this is far from truth.

A recent report last week from ANZ showed speculative trading hitting the highest levels since 2013, just showing that flocking to the US dollar isn’t the game plan for many traders like years gone by. With the US dollar continue to devalue I expect the Euro and Australian dollar to continue to rise therefore clients holding onto Australian dollars could continue to benefit in the weeks to come.

Earlier in the week Australian dollar interest rates were held at 1.5%, which is another reason for speculators choosing the Australian dollar. If you look globally 1.5% is one of the highest interest rates on offer. The likes of the UK sit at 0.25% and the Eurozone at 0%.

Data releases to look out for moving forward are GDP numbers Wednesday morning, Retail sales Thursday morning and RBA Governor Philip Lowe’s speech Friday morning. I wouldn’t be surprised to see Mr Lowe try and talk down the Aussie as exchange rates continue to run at worrying high levels, levels that the Governor has already eluded to as dangerous for the Australian economy.

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.

Will Brexit uncertainties limit a Pound to Aussie Dollar recovery? (Joseph Wright)

The Pound to Aussie Dollar exchange rate is currently trading at the top end of its post-brexit vote lows at the moment, with it’s multi-month low sitting at 1.6171.

It has traded in the late 1.50’s since the vote so now is an important time as we’ll see whether the pair will fall below this mark and hit new brexit lows as the Euro has over the past week.

Under normal circumstances I would expect to see future Sterling gains against the Aussie Dollar due to the overheating housing market concerns, as well as the RBA’s reluctance to amend interest rates to counter this but due to fears surrounding the UK economy in future, I’m not expecting to see the Pound recover back to levels of 1.70 – 1.76 that we saw earlier this year.

Many current financial headlines are centered around the Brexit negotiations and how the European Commission is becoming frustrated with the UK’s lack of clarity regarding the exit strategy, with the UK not willing to show its hand until the Brexit Bill is confirmed.

If you would like to be kept updated regarding any short-term price movements involving the Pound and the Aussie Dollar, do feel free to get in touch with me and register your interest, as we’re able to keep clients informed.

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.

 

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.

 

Australian Dollar remains strong, but Aussie Dollar sellers should be wary of the RBA’s attempts to weaken it! (Joseph Wright)

In the last month alone the Aussie Dollar has gained an impressive 4% against the US Dollar, and the currency has also manged to find itself trading at the top end of it’s post-Brexit levels against the Pound.

It has also become clear that the Reserve Bank of Australia is skeptical to make amendments to the current interest rate through fear of affecting the housing market. Property prices are overheating down under, especially in the east-coast and a change could create a dramatic impact so I believe there won’t be a change for a while.

The Pound has been underperforming recently which has accentuated the losses for the GBP to AUD rate, and although I think there’s a chance we could see the RBA attempt to talk down the Aussie Dollar and economy in order to keep the currency from becoming even more overvalued, I would rule out a move back down the lowest levels since the Brexit vote of 1.59.

If you are planning on exchanging Aussie Dollars into Pounds and think the rate could become even further favourable, it may be worth looking into setting up a Limit Order in order to try and trade at a higher rate should it become available. I’ll be happy to discuss this in further detail should you wish to.

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 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.

 

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.

Pound to Aussie Dollar range-bound, but where to next? (Joseph Wright)

The Pound to Aussie Dollar exchange rate has been trading between 1.66 and 1.68 for a few days now, as the pair appear to have consolidated below 1.70 in the wake of the disappointing election outcome for Sterling bulls.

As of yet there is no official agreement between the Conservatives and the Democratic Unionist Party (DUP) although speculation is mounting as to the amount the Conservatives will have to pay for the coalition, with some speculating amounts of up to £2bn.

Moving forward I’m expecting any news of the coalition to have a potential impact on the Pound to Aussie Dollar buying rate, which is where keeping in touch with us can really help as we’re able to act whenever there’s a big short term move.

Brexit negotiations are now also underway, which is another issue for the government to deal with along with the ongoing Grenfell Tower tragedy and the recent terrorist issues.

On the other hand the Aussie Dollar has been under pressure in recent weeks as the Chinese economy appears to be slowing, which is a negative for the value of AUD as the Australian and Chinese economies are key trading partners.

With both currencies coming pressure for different reasons, it could be that the weaker of the two that results in further price movement for the GBP/AUD pair.

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.