Tag Archives: currency transfer
Brexit chaos continues as Conservative MP’s trigger a vote of no confidence in PM May, will this put pressure on GBP/AUD?
This morning it’s been announced that a vote of no-confidence has been triggered by the Conservative Party after Sir Graham Brady, the Chairman of the 1922 Committee confirmed that he has received at least 48 letters of no-confidence from Conservative MP’s.
The Chairman of the 1922 Committee isn’t required to announce how many letters he’s received but we do know that it’s at least 48 as this number constitutes 15% of the Tory members. Since the news broke the Pound has actually remained unchanged and this is probably because the vote will take place this evening between 6.00 pm and 8.00 pm so until shortly afterwards we won’t know the outcome and therefore, the next steps for Brexit.
Since the announcement which was around 7.45 am this morning, there have been a number of Conservative MP’s that have outlined their plans to support May, with the general consensus that a change in leadership this far into the Brexit process would be chaotic. If there are a number of votes against against her though, there is a chance she may resign even if she’s not obliged to owing to the lack of support from her own political party.
May has already given a speech outside Downing Street this morning whereby she’s highlighted that if she’s replaced a new leader would have to delay Brexit, as they wouldn’t have enough time to renegotiate the withdrawal agreement.
With regards to the Pound to Aussie Dollar exchange rate I would expect to see the next potential market movement to come after the vote this evening, with the result expected to be released shortly after the vote.
AUD exchange rates have been influenced over the past week and a half by the concerns that the US-China trade war tensions could resurface, as China is Australia’s main trading partner. Those of our readers planning a GBP/AUD trade should follow this matter as it’s the main driver of AUD value at the moment.
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 falls against the Australian dollar due to meaningful vote cancelled
In recent weeks the pound has been falling dramatically against the Australian dollar and this trend continued throughout yesterday trading session as Theresa May cancelled the meaningful vote in Parliament. Furthermore the Prime Minister made a statement about why she had cancelled the vote and the general consensus was because she was going to lose and therefore she was going back to Brussels this week for further guarantees. Following the statement in the House of Commons Theresa May answered questions from fellow MPs and the Prime Minister came under further pressure and this was represented in the exchange rates.
GBPAUD dropped throughout the day from 1.7725 to 1.7475. To put this into monetary value a AU$400,000 transfer now costs an additional £3,300 compared to this time yesterday.
The Prime Minister has now flown to Hague to discuss Brexit with Mr Rutte, the Prime Minister of the Netherlands. Mr Rutte has been known to give an extra helping hand for the Prime Minister and this is why I believe this is her first trip. Thereafter she is set to travel to Berlin to meet to meet Angela Merkel and then hold talks with the European Commission.
If its the case the Prime Minister fails to receive further reassurances from the EU, it looks like her days are numbered. If the Prime Minister was ousted or resigns a leadership contest would take at least a couple of weeks especially over the Christmas period. therefore I expect this would put further pressure on sterling and GBPAUD would fall further.
Looking further ahead I expect the pound will continue to decline against the Australian dollar and fall to the low 1.70s or even the high 1.60s. However if the Prime Minister manages to get further concession which is extremely unlikely the pound could rebound significantly making Australian dollars cheaper to buy.
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.
Aussie Dollar comes under pressure as US-China tensions resurface, and fears of a global slowdown take hold
The Australian Dollar has come under pressure in early trading today, although the fall has a lot further to go to wipe out the gains made by AUD over the past month and a half. Against the US Dollar the currency has lost over 1% over the past 24-hours as investors have piled into safe haven currencies and taken funds out of riskier currencies such as the Aussie.
Over in the US the Federal Reserve Bank has indicated plans for a less aggressive monetary policy next year than the markets had previously anticipated, and signs of a global slowdown with stock markets still selling off is concerning financial markets hence the sell-off.
AUD exchange rates haven’t been helped by comments out of the White House yesterday either. In the lead up to the G20 meeting next week there have been hopes of a truce between US President Donald Trump, and Chinese President Xi Jinping, but yesterday as the White House said Beijing has failed to alter its ‘unfair’ practices. As China is such a key trading partner of Australia’s this is negative news for AUD which perhaps explains yesterday’s sell-off of the Aussie Dollar.
There are no economic data releases out of Australia this week, so I expect the GBP/AUD rate to continue to be driven by Brexit related updates which are coming through thick and fast at the moment. UK PM, Theresa May will be in Brussels today to discuss the Brexit agreement text with EU leaders for the first time since the text was announced last 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.
AUD Forecast – Economic Crisis in Turkey is Negatively Impacting the AUD (Matthew Vassallo)
Sterling has made inroads against its AUD counterpart over the past few days, with GBP/AUD rates moving back above 1.76.
The AUD and other commodity-based currencies have seen their value dip, since the Turkish economic crisis deepened towards the later part of last week.
The Turkish Lira (TYR) has hit record lows against the USD, with inflation levels in Turkey hitting a staggering figure of 15%. The Turkish stock market has fallen by over 17%, causing investors to panic, whilst also sapping their risk appetite.
When the global markets stutter and investors risk appetite falls, usually commodity-based currencies feel the negative effects first. These are considered riskier assets by investors, which are generally sold-off in times of global market uncertainty. This is one of the reasons why the Pound has made inroads against the AUD over the past few days but the key question now, is how much higher is Sterling likely to go?
With UK Prime Minister Theresa May on holiday, Brexit talks will remain on hold until her return. This means that the current crisis in Turkey is likely to dominate headlines over the coming days, which could lead to further pressure on the AUD.
The UK economy also received a boost this morning, following the release of the latest UK Unemployment data. The official Unemployment Rate fell to 4%, which could also help to support GBP around its current levels.
Moving forward and the markets concerns over Brexit have not disappeared and are likely to resurface before long. Therefore, if I was holding Sterling and looking to buy AUD, I would be keeping a close eye on market developments in the short-term, rather than holding out for any longer-term sustainable gains.
If you have an upcoming 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 winning 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.
Australian dollar rises slightly on RBA decision and a more positive outlook!
The Australian dollar has strengthened slightly on a more positive backing from the RBA, Reserve Bank of Australia. By not being too dovish or soft in their outlook, the Australian dollar has risen. The market is loosely expecting an interest rate hike in the future but this could now be as far ahead as 2020! Some had expected the RBA to be more negative last night, however they were quite positive about the Australian economy.
This has seen the Aussie dollar rise against all currencies, notably the pound and even the US dollar. GBPAUD has been driven into the 1.74’s whilst AUDUSD has risen to 0.7430. Expectations for the Australian dollar centre around the progress of their economy, Governor Lowe will give a speech later this week which could see further news to move the Australian dollar.
Last night’s interest rate decision moved the market as it was more positive than many had expected. It is now believed that in the future the global trade wars which have been raised as a concern which might negatively impact the Australian dollar, may not been such bad news. Tracking the data from China and the commentary from the RBA shows that perhaps this issue will not be as detrimental for the Australian dollar as believed.
Whilst stating they were not overly concerned at the moment from the slowdown in China, this was highlighted as a potential issue for the future and this could well be something that weakens the Australian dollar in the future.
If you need to buy or sell Australian dollars getting the best information is key to being able to track the upcoming news which might move the markets. For more information on the latest trends and themes which will influence the value of your exchange, please speak to me Jonathan by emailing jmw@currencies.co.uk
Australian Dollar continues to lose value as inflation levels stall
The financial markets don’t expect to see the base rate of interest change down under until the end of next year according to futures markets, and this is perhaps one of the reasons behind the Aussie Dollars weakening currently.
If the Reserve Bank of Australia (RBA) doesn’t amend rates the AUD will lose competitiveness as we’ve already seen, as the likelihood of investors holding assets in the currency diminishes owing to the less competitive of the currency. The US Dollar on the other hand has benefited greatly from its more aggressive monetary policy and the greenback has strengthened by such an extent that US President, Donald Trump has voiced his concerns.
The latest bout of Inflation data out of Australia shows that inflation has risen by 2.1% over the past year, which is slightly lower than what economists were expecting. There doesn’t appear to be much momentum regarding Australian inflation levels which is perhaps the reason behind the low expectations of a rate hike in the short-term future.
Although the Pound has been under pressure in recent months owing to the Brexit plan uncertainty, the Pound to Aussie Dollar rate is still towards the top end of it’s longer term trend, which demonstrates the pressure AUD exchange rates have come under. The GBP/AUD pair is likely to be driven by both monetary policy and UK based politics as the UK is going through a crucial time due to the Brexit.
Those monitoring the Aussie Dollars value should also pay attention to US President, Donald Trumps trade tariff’s plans as AUD has come under pressure owing to these concerns. With the Australian economy being reliant on global demand a slowdown to the global economy is likely to have a negative impact the Australian Dollars value.
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 no longer testing 1.80, is a move down into the lower 1.70’s now likely?
After testing the 1.80 mark for a number of weeks, the Pound has recently slipped from these high levels and now the pair are trading closer to 1.75. The 1.80 level does appear to be a resistance and for some time now Sterling sellers would have been best to target their transfers when the mid-market level is as close to 1.80 as possible.
Uncertainty surrounding the UK governments Brexit plans and whether they will be agreed upon in time is behind the drop in the Pound’s value. The fall hasn’t just been against the Aussie Dollar but also against many other major currency pairs with the fall against the US Dollar being one of the most dramatic, as it’s hit a 10-month low.
This week it’s emerged that the Australian jobs market is alot healthier than expected after a substantial amount more jobs were created in May than expected. This has boosted the Aussie Dollar as up until this week the average amount of new jobs was just 16,000 monthly.
One potential downside for the Aussie Dollar is the lack of movement with regards to monetary policy, as the Reserve Bank of Australia doesn’t plan on amending interest rates this year.
With many major economies beginning to make the hikes the Aussie Dollar may lose value as investors opt not to hold funds in AUD.
With little economic data out of Australia for the remainder of the week, our readers have time to get in touch and plan around transfers next week. Do feel free to get in touch if you would like to discuss next week’s economic data releases and how they could impact the rates.
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.
