Tag Archives: currency transfer
GBPAUD breaks through 1.70 (Dayle Littlejohn)
In recent weeks the pound has been losing ground against the Australian dollar and exchange rates have fallen from 1.75 to 1.67. However today Governor of the Bank of England Mark Carney has given Australian dollar buyers something to smile about, as UK interest rates could be hiked in the upcoming months, which would provide strength for sterling as investors look for higher returns on their investments.
The Governor announced today that the MPC will be debating interest rates in the upcoming months and a rate rise all depends on business investment, wage growth, Brexit negotiations and costs for labour.
Off the back of the positive news for the pound GBPAUD has now breached 1.70. To put this into monetary terms the 3 cent improvement this week will save clients £10,000 when purchasing 1,000,000 Australian dollars.
Looking further ahead I expect the pound to continue the upward trend for the remainder of the week and into next week as UK Prime Minister Theresa May should be able to put the election behind her when MPs vote on the queens speech later this week.
The leader of the opposition Jeremy Corbyn has stated he will try to make amendments to the Queens speech but in reality I can’t see any conservative MP voting against their own party, therefore this story should be over by this time next week.
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! **
GBP/AUD Forecast – Will the AUD Continue to Strengthen? (Matthew Vassallo)
GBP/AUD rates have remained flat during Thursday’s trading, with the Pound curbing any further losses following its recent downturn.
Much has been made of the Pound’s detraction, which has come in line with a grave market concern surrounding the political limbo and subsequent economic concerns surrounding the UK economy at present.
UK Prime Minister Theresa May’s decision to call an early election backfired spectacularly and with UK Brexit negotiations already under severe strain and constant scrutiny, investors have turned their back on Sterling.
The AUD continues to surprise and with an upward spike of over 8 cents in the past few weeks. This has helped propel the AUD to near two month highs against GBP and as such many clients will be looking to take advantage of the current rates, with GBP/AUD trading around 1.68.
The AUD is likely to find protection under 1.70 but with the current market unpredictability, any exposed positions could be hit hard by a change in market sentiment.
Being a commodity based currency the AUD relies heavily on global growth remaining strong and whilst the current climate is pushing investors towards the AUD and its higher yielding interest rates, any slowdown in its export sector will hit the Australian economy hard and the AUD will almost certainly suffer as a result.
A strong AUD relies heavily on the export of Australia’s vast supply of raw materials to China, so any clients looking to buy or sell AUD should have a strong interest in Australia’s monthly trade balance figures.
With the UK economy flagging and the tough Brexit negotiations likely to dominate headlines for months to come, it is proving extremely difficult to predict any long-term forecast.
As such I have been advocating that my clients look for short-term market spikes and any spike back towards 1.70 should be taken advantage of by AUD buyers, whilst sellers will be hoping for the recent trend to continue, with a move towards 1.65.
Now is the time to contact a personal currency broker and here I can help guide you through this turbulent market. I assist my clients with the timing of their currency transfers, to ensure that any market value is maximised.
We can offer award winning exchange rates & service, which surpass any of our competitors.
Please feel free to contact me if you would like to be kept up to date with all the latest market movements, or simply wish to compare our rates to those of your current provider.
I am available on 0044 1494 725 353 between 08.30-18.00 and just ask one for the team for Matthew. Alternatively, I can be emailed directly on mtv@currencies.co.uk
Sterling tumbles after Mark Carney Speech (Ben Fletcher)
The Governor of the Bank of England Mark Carney yesterday delivered a speech saying that he doesn’t think an interest rate hike is imminently on the cards. The comments followed a vote by the economic monetary policy committee last week where the members voted 3-5. 8 members voted for the decision and this is the first time in over 5 years 3 members have voted for a hike. The vote last week caused a jump in the market however that was lost yesterday.
The comments yesterday had an instant effect on the market causing nearly a 1% drop in the GBP/AUD rate. Since the final weeks of the UK election and the subsequent hung Parliament result the Aussie has gained nearly 10 cents in strength against sterling, moving the rate to 1.66. In my opinion I don’t see the rate returning to the 1.60 level last seen in March and any Aussie Dollar sellers should consider capitalising on the last two weeks movements.
Where Next for GBP/AUD?
Now that the Brexit negotiations have started there is potential for the markets to move at an instant. David Davis the UK’s Brexit Minister suggested the talks got off to a positive start and that he was hopeful of much of the same in a press conference earlier this week. The main market influencer will be the announcement of a trade deal between the UK and the EU, the moment that comes Sterling’s fortunes could change.
If you’re interested in finding more information about the markets I am able to assist by keeping you up to date with any market. I work for a company that has been in business for 18 years and would be surprised if I am not able to help you make a significant saving on your currency transfers. If you would like to ask any questions please send Ben Fletcher an email at brf@currencies.co.uk.
The impact of Brexit on the Pound vs the Australian Dollar (Tom Holian)
The Pound has endured a difficult last 2 weeks with the GBPAUD exchange rate falling below 1.70 after comfortably trading above that level for a while.
The Pound has been blighted by what has been happening politically and with the Tories failing to form a majority government in the recent elections the uncertainty is causing issues for Sterling.
Indeed, we have still yet to form a majority government and when this happened last time it took 20 days before the Lib Dems and Tories formed the coalition.
Next week the focus will turn to what is happening with the Brexit issue which as we all know caused such a huge problem for the Pound against all major currencies including vs the Australian Dollar this time last year.
As yet the UK has not confirmed whether it will try and opt for a hard or a soft Brexit and as we are still not settled politically there is a lot of uncertainty in the market which is why I think we may see further losses for the Pound vs the Australian Dollar in the near future.
On Tuesday the Reserve Bank of Australia will announce its latest set of minutes from its recent meeting and this is likely to have a small impact on GBPAUD rates but overall I think the Pound will be negatively affected by the Brexit negotiations. Therefore, if you need to send money to Australia it may be worth taking advantage of the current rates.
Having worked in the foreign exchange markets since 2003 for one of the UK’s leading currency brokers I am confident not only of being able to offer you better exchange rates compared to using your own bank but also help you with the timing of your transfer of currency.
If you would like further information or a free quote when buying or selling currency and would like to save money then contact me directly and I look forward to hearing from you.
Tom Holian teh@currencies.co.uk
Bank of England vote causes short term spike for the Pound vs the Australian Dollar (Tom Holian)
The Bank of England have caused a big stir in the foreign exchange markets during today’s session as we have seen a 5-3 split in favour of keeping interest rates on hold.
For the last few months the split has been 7-1 but owing to rapidly rising inflation this is the reason used for the change in the voting pattern.
This vote brings with it a suggestion that interest rates in the UK may be rising sooner than expected and this has helped the Pound to make gains vs the Australian Dollar.
Inflation is now at 2.9% which is close to the highest level in 4 years and with the target set by the Bank of England for 2% this is becoming a problem for the British economy.
With UK Average Earnings falling and inflation rising this is causing the cost of living to go up which is not good news so an interest rate hike could be coming sooner.
I still think this positive jump for the Pound vs the Australian Dollar is short term as the UK has still yet to form a majority government and as yet we do not know when this may happen. When a hung parliament occurred last time it could a total of 20 days before it was sorted.
The other problem that Sterling faces is that of the Brexit negotiations which are officially due to start on Monday and the likelihood at least in the short term is that the talks will be problematic. Therefore, if you’re thinking about buying Australian Dollars it may be worth organising in the near future.
Having worked in the foreign exchange markets since 2003 for one of the UK’s leading currency brokers I am confident not only of being able to offer you better rates of exchange when buying or selling Australian Dollars but also help you with various contract types.
If you would like further information or for a free quote then contact me directly and I look forward to hearing from you.
Tom Holian teh@currencies.co.uk
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.
GBP/AUD Rates Trading Under 1.70! (Matthew Vassallo)
GBP/AUD rates are once again trading under 1.70, as the Pound’s struggles continue following last week’s unexpected election results.
The Pound has seen its gains over the past month dissipate, with 1.70 becoming a key threshold for the pair.
Those clients holding both Sterling and AUD will now be asking themselves how the pair will react over the coming days? Whilst I don’t anticipate a major advancement for the Pound whilst so much uncertainty hangs over the UK economy, any deal between the Conservatives and the little know DUP party from Northern Ireland, could bring an element of stability back to the market.
Political or economic uncertainty is generally a currencies undoing and the Pound’s struggles over recent days is proof of this. Once a government has been formed, then it is far more likely that investor confidence will rise and the Pound could stabilise as a result. This could have an instant negative impact on the AUD and as such the current sell prices for those clients holding AUD look very attractive indeed.
Whilst the AUD has also been supported due to the Chinese economy stabilising and accelerated growth in its own economy, it is always left somewhat vulnerable due its status as a commodity based currency.
For example, the Trump effect is causing investors to panic and this is unlikely to benefit riskier commodity based currencies such as the AUD in the long-term. The AUD’s value is inextricably linked to Australia’s booming export market and any downturn here will likely knock its value. Due its reliance on global growth a change in fortune for China, or concerns regarding the US can cause investors to sell off their riskier assets (such as the AUD) and move funds into ‘safe haven’ currencies such as the CHF.
Ultimately, this means that investors will look to GBP/AUD for example and see the opportunity to make more money on bigger market swings and thus, the pairs value can fluctuate quite substantially.
The current market is extremely unpredictable and with global growth fragile and concerns over the UK economy ahead of what is likely to be arduous Brexit negotiations, I would be tempted to look for short-term market opportunities.
If you have an upcoming GBP or AUD currency transfer to make and would like to be kept up to date with all the latest market movements, or simply wish to compare our award-winning exchange rates with your current provider, then please feel free to contact me on 0044 1494 787 478 and ask one of the team for Matt.
Alternatively, I can be emailed directly on mtv@currencies.co.uk.
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.
Australian GDP provides strength for the Australian dollar (Dayle Littlejohn)
In the early hours of this morning Australia released their latest GDP numbers. As expected yearly and quarterly figures fell from previous figures however the numbers exceeded expectation. Yearly figures were released at 1.7% up 0.2%, and quarterly figures were released at 0.3, 0.1% higher than the consensus.
The Australian dollar has strengthened off the back of the next and GBPAUD exchange rates have dropped 0.65% and therefore 1 1/4 cents. To put this into monetary terms, for Australian dollars sellers buying £200,000 will now save themselves 2,500 dollars.
It’s a busy week for GBPAUD exchange rates as the UK General election is on the horizon. Theresa May and Jeremy Corbyn are still touring the country trying to sway the undecided voter. In recent days security has been a major talking point and Jeremy Corbyn has been on the attack insisting Theresa May should resign as the Conservative parties police cuts have made the streets of the UK less safe.
Theresa May has hit back stating that the police are well resources however she has also stated that she will change human rights laws in a bid to crack down on terrorism.
Towards the end of the week I am expecting major volatility for sterling vs Australian dollar exchange rates. If Theresa May wins a majority I expect the pound to make inroads against the Australian dollar and rates to increase back towards the mid 1.70s and beyond. However any other result I believe GBPAUD will fall back towards the mid 1.60s.
If you are converting sterling and Australian dollars short term, you need to make a decision now. The currency company I work for saves clients money on their currency conversions whilst offering up to date market information which helps the client make informed decisions. Therefore if you have an upcoming currency requirement and would like to save money feel free to email me directly on drl@currencies.co.uk. Alternatively if you would like to discuss your requirements over the phone call 01494-787478 and ask to be put through to Dayle Littlejohn.
** 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 a few minutes and in the past I have saved clients thousands! **
The UK Continues to Mourn Terror Attack – How is the Pound Reacting? (Matthew Vassallo)
As the UK continues to mourn Saturday’s horrific terror attacks, the question clients have asked me this week is how the Pound will react to the tragic events?
Whilst the markets may not have responded as aggressively as in the past, terrorism no doubt plays a part in investors thinking, with a lack of confidence around the economy in question usually the likely outcome.
Sterling was already under pressure against the AUD, with the pair moving back towards 1.70. The Pound did find some support yesterday however, with a recovery back toward 1.73 but whether this spike is sustainable or not is questionable at best.
The Pound has been fighting an uphill battle ever since it was announced that the Torries had a 20 point lead over the Labour party and the markets factored in such figures. Every pre-poll since has indicated a surge in support for Labour and with the most recent suggesting the Conservatives were only ahead by three points, has caused inventors to panic and sell-off their Sterling positions.
This in turn has benefited commodity based currencies such as the AUD, which has found plenty of support under 1.75 over the past couple of weeks.
Looking at the Australian economy and with iron ore prices low, this would usually have a detrimental effect on the value of the AUD due to Australia’s heavy reliance on their export industry. However, currently this is seen as the lesser of two the evils by investors and as such I would be taking advantage of the current sell rates if I was holding AUD.
Anyone who has an upcoming Sterling or AUD currency transfer to make can get in touch with us to run through the current market conditions & forecasts. We can assist not only with our award winning exchange rates but also our experienced insight into the current market to help guide you through your currency exchange process.
I am available on 0044 1494 787 478 and you can ask one of the team for Matt. Alternatively, I can be emailed directly on mtv@currencies.co.uk
