Tag Archives: currency transfer

GBPAUD remains range bound

Over the last 30 days GBPAUD exchange rates have fluctuated in the higher 1.70s with minimal movement as both currencies seem to have been devaluing at the same pace. At the latest Reserve Bank of Australia meeting officials showed concern in regards to the trade tariffs that have been imposed on China by the US. The Australian know that a slowdown in China will have an impact on the Australian economy. Furthermore the International monetary fund have waded into the debate and announced an all out trade war will end up costing the global economy over $430bn.

UK Prime Minister Theresa May is under extreme pressure and last night threatened Tory rebels that she would call a general election if the amendment in regards to the customs union went through the Commons. The uncertainty of another General election would certianly weigh on the pounds value. Furthermore Governor of the Bank of England Mark Carney also failed to help the pounds value yesterday, as he stated a Brexit no deal would mean the Bank of England would have to rethink their future plans.

At the end of the week, UK politicians break for the summer holidays, therefore I expect Brexit related news to go quiet for a few weeks. All eyes will turn to the Bank of England’s interest rate decision early August. The market has been pricing in a hike, however I expect the Bank of England will fail to deliver which will mean sterling takes a hit. Therefore I wouldn’t be surprised to see GBPAUD fall back towards the mid 1.70s over the next month.

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.

Trade Wars and Brexit dictate GBP/AUD (Daniel Johnson)

GBP/AUD – GBP/AUD currently remains range bound between 1.75-1.80. The outlook for both currencies is not necessarily the best. The Australian Dollar will find it hard to find a momentum due to the ongoing trade war between China and the US. Australia has a heavy reliance on China purchasing it’s exports, particularly iron ore. The tariffs imposed by the Trump administration are quite severe and with China threatening to match US tariffs Dollar for Dollar this will hit both economies hard and in turn the Australian Dollar.

During times of global economic uncertainty investors tend to avoid commodity based currencies in favour of safe haven currencies. Despite the US initiating the trade war, the US Dollar is proving to be the destination of choice. 10yr treasury bonds currently offer the best returns seen in years and the Federal Reserve have the intention to hike interest rates a further two times by the end of the year.

I feel the trade war with China could be sustained despite the US holding the majority of the cards.

From the UK side, Brexit negotiations will be key the the value of Sterling. Theresa May’s Brexit proposal has taken criticism as it goes against how Brexit was sold to the public.

The proposal includes a free trade deal for goods and agricultural products. This would essentially keep the UK’s rules and regulations aligned with those of the EU. This would allow trade in goods to flow freely and the Irish border would remain open.

The proposal for services however will be different. The UK would like to take back control of services, particularly the financial sector. Services make up 80% of UK GDP. This would result in more barriers for companies’ trading aboard.

The risk of course is that financial services will move abroad. This is a serious concern as the tax income from the financial sector is huge. May intends to reform the existing equivalence regulation where temporary customs union access is granted, but can be removed at anytime. This situation does not fill me with confidence.

Merkel has apparently agreed to a deal behind closed doors.

If the trade war escalates then we could see GBP/AUD breech 1.80 although I do think this would be a long shot. aim to trade in the 1.79s if you have an Australian Dollar requirement.

If you have a currency requirement I will be happy to assist. It is crucial to be in touch with an experienced broker when the market is currently so hard to predict. If you let me know the details of your trade I will endeavour to produce a free trading strategy to suit your individual needs. Have faith knowing you will be dealing with a brokerage in business for over 16yrs, Foreign Currency Direct Plc. We are a no risk entity as we do not speculate on the market and we are registered with the FCA. If you have a currency provider take a minute to send over the rates they offer and I am confident I can demonstrate a significant saving. I can be contacted at dcj@currencies.co.uk . (Daniel Johnson) Thank you for reading.

 

UK GDP gives the pound a boost vs Australian dollar

This morning at 9.30am UK Gross Domestic Product numbers were revised to 0.2% from 0.1% for quarter 1 which has given the pound a boost against the Australian dollar. The Bank of England in recent weeks have been hinting that an interest hike could occur as early as August and the improvement in GDP certainly helps the cause. For Australian dollar buyers rates have improved by 0.5%.

Another reason why the pound has been making progressive gains against the Australian dollar is that the Aussie has been weakening due to the trade war between the US and China. The US is Australia’s most important defence ally and China the most important trade partner, therefore Australia are stuck between a rock and a hard place. The theory behind it is that further tensions will put further pressure on the Australian dollar and therefore I would expect GBPAUD to break through 1.80.

In other news the EU summit is now over, and the message from the EU is that the UK need to make progression fast. UK Prime Minister Theresa May has called a meeting at her Cheques country side retreat,  and the full cabinet will attend. The rumour on the market is that Theresa May could announce a soft approach which will be outlined in her white paper which should be released early July. I expect this may give the pound a small boost.

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 the Pound hit 1.80 this week against the Australian Dollar? (Tom Holian)

Sadly the Australian football team’s time at the World Cup has been cut short and similarly with the currency side of things the Australian Dollar has also struggled during the course of the last month as well.

The Trade Wars between the US and China has caused a big problem for the Australian Dollar as China is Australia’s largest trading partner so any negative news will often result in Australian Dollar weakness.

At the moment threats are that the US could impose as much as US$200bn on Chinese goods and this is causing a very big problem for global trade and as the Australian Dollar is a commodity based currency this has been badly affected in the same way as both the South African Rand and the New Zealand Dollar.

GBPAUD exchange rates have been heading in the direction of 1.80 but appear to be hitting a level of resistance just below at the moment. However, I think we could see the Pound rise higher going into next month.

The EU summit will be taking place over the next couple of days and as well as the migrant crisis one of the other main topics for discussion will be the latest developments surrounding the Brexit issue and how the EU will work without the UK.

If the talks go well for the UK we could see the Pound potentially break higher than 1.80 against the Aussie Dollar so make sure you’re well prepared to take advantage of any potential spikes in the Pound’s favour.

We end the week with the final revision of UK GDP figures for the first quarter of 2018 so any revision upwards could also send the Pound in an upwards direction.

If you have a currency transfer to make and would like to save money when exchanging Australian Dollars then contact me directly for a free quote and I look forward to hearing from you.

Tom Holian teh@currencies.co.uk

Could the Pound make further gains this week against the Australian Dollar?

According to many sources the Australian Dollar could be under real pressure in the long term as the Chinese economy continues to slow and the US Federal Reserve continues on their path of raising interest rates.

The Fed has already raised rates 7 times since December 2015 and have already increased rates twice during the course of this year as well.

The Australian Dollar has hit its lowest point vs the US Dollar in twelve months and this has also been caused by the ongoing Trade Wars between the US and China.

The Australian bond yields have now dropped below that offered by US Treasuries and this could get even worse as as the Fed continue their path of raising interest rates later this year.

At the moment the view from the Reserve Bank of Australia is that they are likely to keep interest rates on hold for a long period of time and this is why the Australian Dollar has weakened recently heading in the direction of 1.80 recently.

With the Bank of England due to meet tomorrow afternoon I think the central bank will keep interest rates on hold once again with a 7-2 split but with the UK showing some very positive Retail Sales earlier this month I think we could see some signs that an interest rate hike could be coming sooner than the markets expects and if this is the case we could see the Pound make some further gains vs the Australian Dollar towards the end of the week.

If you have a currency transfer to make and would like to save money on exchange rates compared to using your own bank then contact me directly for a free quote and I look forward to hearing from you.

Tom Holian teh@currencies.co.uk

AUD Forecast – RBA Minutes Indicate Interest Rate Hike Unlikely (Matthew Vassallo)

The AUD has come under some pressure against Sterling of recent days, although on-going Brexit concerns are still handicapping any major advances for the Pound.

GBP/AUD rates moved close to 1.80 overnight and despite the AUD finding plenty of support around this level, it seems as though the Reserve Bank of Australia (RBA) minutes released overnight have had an impact on market sentiment.

The AUD had been performing solidly of late, with the Pound struggling to make any impact as negotiations over Brexit continue to move at a snail’s pace.

With the UK government split on its preferred strategy, the Pound has found little market support over recent weeks.

However last night’s RBA minutes, which give investors a key insight into the central banks current economic stance, seems to have dampened some of the recent positivity.

They suggested that the current record low interest rates in Australia were helping to support the economy, an indication that they were unlikely to hike the base rate in the short-term.

The most poignant piece of information however, referenced a concern that any further increase in value for the AUD would lead to a slower rise in inflation and economic growth. This meant that the central bank may well look to “jawbone” the AUD, which is when they will look to talk down the currency’s value, without introducing any official devaluation methods.

This in turn has caused investors to sell-off their AUD currency positions, which is probably why we have seen the AUD weaken this morning.

In the short-term concerns over Brexit will continue to shackle any spikes in value for Sterling, with the AUD likely to find an element of protection around the 1.80 threshold.

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.

Weak data results in a drop for the Aussie Dollar, where to next for AUD exchange rates?

There’s been a loss for the Aussie Dollar across the board of major currency pairs today, with it’s losses against the Pound and the Japanese Yen being the biggest.

Employment figures down under for May were released this morning, and that caused the Aussie Dollar to drop as the figures released were worse than expected. The figures have got worse in recent months which is another reason for the sell-off of the Aussie Dollar.

Some disappointing data out of out of China recently has also weighed on the Aussie Dollars value, owing to the close trading relationship between the two nations. This isn’t an unusual pattern and those planning on making a currency exchange involving the Aussie Dollar should consider this in future.

The poor data out of China has caused China-linked commodity prices and also the Chinese stock market to fall, and this isn’t a great sign for the Aussie Dollar moving forward. Fears surrounding the trade tariff’s potentially put on China by the US are also weighing on AUD exchange rates.

There’s a speech planned by Reserve Bank of Australia assistant Governor Ellis tomorrow. Although no changes to monetary policy down under are expected this year its worth following his comments in case he alludes to future monetary policy changes or even the slowdown in the Australian economy recently.

If you would like to be notified in the event of a major market move for AUD exchange rates, do feel free to register your interest.

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 – Fears Over Brexit Continue to Support the AUD (Matthew Vassallo)

It’s been a quiet start to the week for the AUD, following yesterday’s bank holiday in Australia.

GBP/AUD rates have remained range bound over recent days, with little market movement despite the developments in the Korean peninsula.

Almost every headline this morning relates to the historic meeting between President Donald Trump and Korean leader Kim Jong-Un.

Whilst we are still waiting for the full details of the deal that has been put in place, both Trump and Kim confirmed that they had signed a document that has committed North Korea to complete denuclearisation.

Whilst this deal has no direct impact on the Australian economy, the repercussions are likely to have ripple effects across the global economy.

The AUD has performed well of late, particularly against its GBP counterpart, finding plenty of support around the current levels. Whilst GBP/AUD are trading around 1.76 this morning the pound has not threatened to make any sustained move towards 1.80 over recent weeks.

Sterling continues to be handicapped by concerns over Brexit and with today’s House of Commons debate will be followed closely by investors, a positive resolution in the short-term seems optimistic at best.

This uncertainty is helping to support the AUD around the current levels and with yesterday’s poor UK Manufacturing data a real for cause for concern, I am not anticipating a major shift in Sterling’s favour over the coming days.

If you have an upcoming GBP or EUR 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.

Important news to move Australian dollar exchange rates!

The Australian dollar has been a stronger contender on exchange rates lately as investors back the Australian dollar to potentially improve in the future. This is all owing to the improved expectations we have of late that the Chinese economy will improve further and the global economy is not as badly affected by the Trade Wars.

The Trade Wars and potential future trading activity of the global economy is a big driver on Australian dollar exchange rates, if you are looking for improvements for buying or selling the Australian dollar, keeping abreast of the latest developments is key to maximising your overall position. Australian unemployment data next week could be a big driver as attitudes to the economy and the labour market are vital to shifts in the likelihood of the RBA (Reserve Bank Australia) to raise interest rates in the future.

If you have a transfer to make in the future then understanding the market and all of your options in advance is highly recommended to help minimise the inherent uncertainty of just where levels could potentially go. On GBPAUD exchange rates we could easily see the rate rise to 1.80 if better UK news and worse information on the Aussie comes into play.

Next week is also crucial as we have the latest US interest rate decision where the market is anticipating further information from the US Federal Reserve on interest rate expectations. This could see the US dollar rise which would weaken the Aussie, their relationship is quite closely linked since both now have similar interest rates but investors might prefer to hold the US dollar as it is seen as a more stable and reliable currency.

If you have a transfer to consider in the future, understanding the market and all of your options in advance is key, for more information at no cost or obligation please contact me Jonathan Watson jmw@currencies.co.uk

Thank you for reading and I look forward to hearing from you.

Pound improves against the Australian Dollar after positive Services sector news

UK services sector data published this morning came out much better than expected and this has put an end to the Pound’s recent demise vs the Australian Dollar.

The sector rose quicker than expected during May which has given rise to a possible hint of an interest rate hike.

The PMI data hit a three month high at 54 compared to the previous month of 52.8 but at the same time the survey did suggest that growth could slow down later this year.

The good news for the Pound is that the services sector accounts for over three quarters of the UK’s economy but is this good news a temporary positive sign?

The uncertainty surrounding Brexit clearly is keeping the Pound under a lot of pressure against a number of different currencies and the EU withdrawal bill will be discussed next week and this could cause further problems for the Pound.

Personally speaking I cannot foresee an interest rate hike coming for the UK at all during the course of the year as we are still deeply involved with the Brexit talks so anything to rock the boat in terms of monetary policy is highly unlikely.

Also, with UK GDP only recently growing at its slowest growth in 6 years a month ago and with inflation falling I don’t think the Bank of England will have much appetite to change the status quo.

Friday could be the biggest day of the week for anyone with an Australian Dollar transfer to make as we start the day with Chinese Trade Balance figures combined with Chinese Import and Export data. Following this the latest NIESR UK GDP estimate for the last three months will also be published and if we see another negative release this could put further pressure on Sterling vs the Australian dollar.

If you would like further information or a free quote when moving Australian Dollars then contact me directly and I look forward to hearing from you. A quick email could save you a lot of money on your currency transfer.

Tom Holian teh@currencies.co.uk