Tag Archives: currency transfer
AUD Continues to Make Inroads Against Sterling (Matthew Vassallo)
The AUD made further inroads against Sterling overnight, following positive employment data released in Australia.
The International Monetary (IMF) also raised China’s growth forecasts for 2018-2020 to 6.4%, an improvement of 0.4%. With Australia’s close trade to ties to China, any improvement in the Chinese economy inevitably helps boost the AUD’s value.
Sterling has lost almost two cents at its low against the AUD over the past 24 hours, with the pair now trading around 1.62.
The market perception surrounding the UK economy remains weak, with investors extremely sceptical about how Brexit negotiations will develop and the potential negative impact this will have on the UK economy. This is likely to drive market sentiment for the foreseeable future and as such, I am not anticipating a major improvement for the Pound any time soon.
Investors will also be looking towards any developments between the US & North Korea, which is obviously a destabilising global situation.
This is likely to drive global currencies and commodity based assets such as the AUD, could be amongst the hardest hit. Global fear generally means investors will start to pull funds away from riskier, potentially higher yielding currencies such, as the AUD and return them to safer havens such as the CHF or historically the USD.
This means that the AUD could be inadvertently weakened by any increase in the rhetoric surrounding the Korean Peninsula, so clients may wish to consider this ahead of any AUD currency exchanges this week.
Whilst the recent economic data emanating from Australia has been fairly strong, Sterling should find some support above 1.60 over the coming days.
If you have an upcoming GBP or AUD currency transfer to make you can contact me directly on 01494 787 478. We can help guide you through this turbulent market and as a company we have over eighteen years’ experience, in helping our clients achieve the very best exchange rates on any given market.
Our award inning rates can be accessed very easily over the phone and I can keep you posted with key market developments ahead of any prospective exchange you need to make.
Feel free to email me directly on mtv@currencies.co.uk to find out all the options available to you ahead of your currency transfer.
Will the Pound fall this month against the Australian Dollar? (Tom Holian)
We have seen a relatively stable period this month for GBPAUD exchange rates but could this change going into next month?
At the moment the markets have been quiet whilst many political leaders take their summer break but when things get started in September it is likely that the Brexit negotiations will once again begin to dominate the headlines.
When the snap general election was called back in Easter Sterling vs the Australian Dollar was trading above 1.70 but since then we have experienced both a hung parliament as well as the beginning of the Brexit talks.
Both have caused big falls in Sterling against all major currencices including against the Australian Dollar.
Growth forecasts for the UK have been downgraded both for this year and next year and this week’s Trade Balance figures for the UK have showed a huge fall in investment by businesses who are stalling their projects owing to the uncertainty as to what may happen with Brexit.
Longer term I expect the Pound to struggle and although in the short term I expect to see some small periods of gains I think they will be limited.
Therefore, if you’re considering sending money to Australia it may be worth doing it during this month.
If you have a currency exchange to make whether it be buying or selling Australian Dollars and want to save money on exchange rates compared to using your own bank then feel free to make contact with me directly via email.
Having worked in the foreign exchange industry since 2003 for one of the UK’s leading currency brokers I am confident of being able to offer you both better rates as well as keeping you updated with various market movements.
For a free quote email me directly Tom Holian teh@currencies.co.uk
What is happening to the Australian Dollar and the Pound? (Tom Holian)
The Pound began to fall after Thursday’s Bank of England interest rate decision which saw the vote split 6-2 in favour of keeping rates on hold.
In June the split was 5-3 but as Kristin Forbes has left since the last decision the incoming MPC member Silvana Tenreyo decided not to rock the boat so rates were kept on hold.
This immediately saw the Pound fall against the Australian Dollar and the movement was exacerbated with Mark Carney’s comments which followed. He highlighted the risks that the UK economy is facing caused by the uncertainty of the Brexit vote and it appears as though the UK economy is started to be affected.
Indeed, the growth forecast for the UK was downgraded from 1.9% to 1.7% for 2017 and down from 1.7% to 1.6% for 2018.
After some small gains for the Pound vs the Australian Dollar at the start of last week the problems in my opinion are now likely to continue.
On Tuesday the latest NIESR GDP estimate is due out for the UK.
Although these figures are not the official ones they are usually very accurate and are the most up to date so if the figures highlight a slowdown this is likely to see the Pound fall vs the Australian Dollar.
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.
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.
What will happen to the Pound vs the Australian Dollar this week? (Tom Holian)
Over the last two months the Australian Dollar has strengthened against the Pound by as much as 7% or the difference of £10,000 on a currency transfer of AUD$200,000 making a big difference as to when to move to or from Australia.
However, overnight we have seen some small gains for the Pound vs the Australian Dollar when RBA governor Philip Lowe suggested that any interest rate hikes may be some time off.
This led to the Pound briefly hitting 1.65 vs the Australian Dollar providing some brief respite to anyone looking to send money to Australia.
Today’s UK GDP data came out exactly as expected for the second quarter so this did little to affect GBPAUD exchange rates so the next catalyst for movement could come overnight with the release of the latest interest rate decision for the US when the Federal Reserve meets to decide its latest monetary policy.
I still think if there are any gains for the Pound vs the Australian Dollar they will be limited as the Pound continues to struggle owing to the Brexit uncertainty and that is unlikely to go away in the near future.
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.
Australian dollar predictions against sterling
Over the last two weeks the Australian dollar has been making inroads against the pound and GBPAUD exchange rates have plummeted 7 cents. To put this into monetary terms for any clients that are purchasing Australian dollars with pounds a 400,000 Australian dollar purchase will now cost just under an additional £10,000. However on the other hand for clients converting Australian dollars into pounds this is certainly something to smile about.
The latest minutes from the Reserve Bank of Australia gave no clear indication that the RBA will be raising interest rates anytime soon however the minutes were seen as bullish as it is clear that the next move will be to follow the trend of other central banks and raise the base rate.
UK inflation data disappointed last week which has relieved some of the pressure the Bank of England were receiving. The Bank of England set an inflation goal of 2% and at present even with the drop, inflation sits at 2.6%. Many economists were predicting if inflation rose above 3% we would get clear direction from the Governor of the Bank of England and an interest rate hike early next year was likely. However with inflation now falling the chances of a rate hike have diminished.
Since the UK public decided to vote out of the EU, the pound has lost approximately 15% against all of the major currencies. Brexit negotiations I believe will continue to weigh down on the pound for the foreseeable future as I don’t believe a deal will be struck anytime soon in regards to the divorce settlement or the rights of EU citizens living in the UK.
Therefore for Australian dollar buyers purchasing currency on the back of a positive move would be my strategy as I do not foresee any substantial gains being made over the upcoming months. Australian dollar sellers may wish to take advantage of the 7 cent spike in their favour or should continue to monitor the market and try to covert in the 1.50s.
However Australian dollar sellers should be cautious as the National Bank of Australia believe the Australian dollar is overvalued which I actually agree with. At the moment currency investment continues to land on Australian shores due to the high interest rates.
The main data releases to look out for this week are UK GDP numbers Wednesday morning which are set to show a decline which could lead to further sterling weakness and the Federal Reserve interest rate decision Wednesday evening. It is unlikely the Fed will raise interest rates and I expect a neutral statement by Janet Yellen shortly after. This could lead to a further sell off of US dollars and the Australian dollar could benefit.
For people that are converting pounds and Australian dollars for the first time, it is essential that you get the very best exchange rates. If you have used a brokerage for many years or have been referred a brokerage I strongly recommend you compare rates to make sure you get the best price possible and therefore save money. This simple exercise takes two minutes and in the past I have saved clients hundreds and in some instances thousands of pounds.
My direct email is drl@currencies.co.uk Dayle Littlejohn. Alternatively call me Monday morning on 0044 1494 787 478 and ask the reception team to be put through to Dayle Littlejohn.
Austalian dollar soars against sterling (Dayle Littlejohn)
Earlier this morning the Australian dollar spiked against sterling by over 1.5%, when the Reserve Bank of Australia released their latest minutes. Investors piled into the Australian dollar off the back of the news that the cash rate could increase to 3.5% from 1.5% and not have a negative impact, which implies the RBA could also think about raising interest rates in the months to come.
Personally I think this is a spike in the market to take advantage of for Australian dollar sellers buying pounds as I believe the Australian dollar is overvalued. This is supported by the National Australian Bank who released an article last week with similar views. With the property market being over inflated in certain major cities (especially east coast), I find it difficult to see how the RBA will alter the interest rate.
If they make the cut this will entice people to take out larger mortgages where as a hike would strengthen the Australian dollar further and in turn have a negative impact on Australian exports.
Looking further ahead Australia are set to release their latest Unemployment rates and Employment change numbers Thursday morning. Unemployment numbers are set to slightly rise therefore some of the gains we have seen this morning could be reversed.
As for the pound UK inflation is released in 30 minutes. If the figure exceeds 2.9% this could put further pressure on the Bank of England to raise interest rates and again some of the gains for sterling buyers could be lost. To find out how the inflation numbers impact the market feel free to email me and I will let you know the outcome later this morning.
If you are trading GBPAUD 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! **
Reserve Bank of Australia Minutes Tomorrow (Ben Fletcher)
In the early hours of tomorrow morning the RBA will reveal the minutes of their latest meeting. Whenever a central bank reveals the committee’s thoughts markets can always get excited. Several countries around the globe have started to raise interest rates and the recent strength for the Australian Dollar over the last 9 months suggest Australia may be the next to hike rates.
China which is one of the key influences on the Australian economy last week released positive date and installed further confidence that things are settled. In my opinion it would not surprise me if there is a downward movement in the GBP/AUD rate tomorrow morning and may present a good time for Aussie Dollar sellers. However come tomorrow afternoon the main influence will be Bank of England Governor Mark Carney. The UK interest rate conundrum continues on and if Carney makes a hint towards a hike expect a major market movement. Tomorrow could see a good morning for the Aussie Dollar reaching a near month high followed by a return to nearly 1.70 on the GBP/AUD rate.
The end of the week may also bring AUD volatility as there will be a release of June’s unemployment figures. If these are positive expect Aussie Dollar strength, however as always anything negative or unexpected can shock the market.
When the markets are this volatile there will always be spikes and drops, making timing a transfer vital to maximise your funds. If you have any questions with my forecast above or would like to simply discuss an upcoming requirement you have please send me an email to brf@currencies.co.uk. I would be happy to share my thoughts with you and I may be able to offer a viable solution to help you complete a trade, as I have several years experience working for a brokerage
