Tag Archives: GBP/AUD forecast

Will GBP/AUD Rates Hit 1.95? (Matthew Vassallo)

It’s been a volatile few days for GBP/AUD rates, with the Pound gaining value for much of this period. GBP/AUD rates moved back above 1.90 following the Reserve Bank of Australia’s comments regarding another possible interest rate cut and the RBA’s commitment to lowering the AUD’s value in order to enhance their exports.

With a slowdown in China’s economy negatively affecting the Australian economy due to their heavy trade links and the very realistic prospect of the RBA cutting interest rates again early next year, we could find GBP/AUD rates heading 1.95 before long.  A word of caution however, as this is not the first time GBP has threatened to break the current levels and each time it has put pressure on it the AUD has found support and realigned back towards 1.85.

The Pound meanwhile has been boosted by the Bank of England’s decision to raise growth forecasts for the UK economy for 2015 and beyond and this mornings better than expected Retail Sales figures have only enhanced this positive sentiment.

If you have an upcoming currency requirement 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 directly on mtv@currencies.co.uk

Are GBP/AUD Rates Heading for 1.95 by Christmas? (Matthew Vassallo)

It’s been a volatile time for GBP/AUD exchange rates recently, with uncertainty surrounding the Australian economy handicapping any AUD spikes. Sterling has gathered momentum over recent weeks with the pair now floating around 1.90 on the exchange, providing some of the best buying levels of the past four years.

The Reserve Bank of Australia (RBA) have already stated they feel the AUD is overvalued and the aggressive move on GBP/AUD rates during yesterday’s trading, we saw over a cent swing with the Pound hitting 1.9073 before dropping away very quickly below 1.90, could be attributed to this. We also need to consider that the RBA could well cut Australian interest rates early in 2015, which is causing uncertainty amongst investors. Current rates already stand at a record low of 2.5% but this is likely to drop further, as the Australian central bank look for measures to combat on-going economic difficulties inside the Australian economy and further afield.

In fact it is the Asian markets, in particular China’s demand for Australia’s raw materials, which can drive AUD exchange rates. The Australian economy has always relied heavily on the export of its vast supplies of raw materials. If this demand slows then quite simply the Australian economy will suffer because of it.

If you have an upcoming currency requirement 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 directly on mtv@currencies.co.uk

 

GBP/AUD Rates Moving Back Towards 1.90 (Matthew Vassallo)

Sterling received a major boost yesterday, following a bullish Autumn Statement by Chancellor George Osborne. He raised growth forecasts for 2015 and beyond and despite some reservations regarding his aggressive spending cuts, the markets reacted positively pushing GBP/AUD rates back through 1.86.

For a time it seemed as if the AUD was going to build some positive momentum against GBP, with rates creeping back towards 1.80 last month but these latest developments mean in my opinion it is likely we will see GBP/AUD hit 1.90 by the first quarter of 2015.

The Bank of England are still likely to want to control Sterling’s value, as there are on-going concerns that the Pound is gaining too much value, which is ultimately hurting our export industry. However, the Reserve Bank of Australia’s (RBA) commitment to weakening the AUD is stronger than that of the BoE and with China’s demand for Australia’s raw materials slowing, it is likely the Australian economy could face further smuggles as we head into next year.

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GBP/AUD Rates Back Above 1.85 (Matthew Vassallo)

GBP/AUD rates have spiked significantly over the past 48 hours following poor Chinese data and a speech by Reserve Bank of Australia (RBA) deputy governor Philip Lowe. The AUD lost over 1% during yesterday’s trading as Lowe stated he felt the AUD was gaining too much market strength and was concerned about how this would affect their export industry. He also mentioned th RBA were open to further interest rate cuts and that a weaker AUD was likely to assist a recovering Australian economy.

I now feel we are likely to see GBP/AUD levels move back towards 1.90 before Christmas, unless the Bank of England (BoE) step in to try and control Sterling’s value.

UK Gross Domestic Product (GDP) figures were released this morning and came out as expected, so attention will now switch to the Australian New Homes Sale data coming out overnight, which if positive could help curb any further AUD loses over the coming days.

If you have an upcoming currency requirement 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 don’t hesitate to contact me directly on mtv@currencies.co.uk

GBP/AUD Forecast (Matthew Vassallo)

GBP/AUD rates continue to trade above 1.80 on the exchange, providing good buying opportunities for those holding GBP. It’s been a volatile few days for the Pound with losses against the AUD last week, following the latest UK quarterly inflation report. It now seems as though UK interest rates are unlikely to be raised until the last quarter of next year, news which knocked investor confidence in the Pound.

This morning we had the latest set of UK Retail Sales figures and with an improvement from 0.3% to 0.8% the Pound found support after a difficult few days, with GBP/AUD moving back above 1.82.

It will be interesting to note how any improvements in China’s economy will effect the AUD, as generally growth in China’s economy is considered a positive for the Australian economy due to their trade links and can often help strengthen the AUD’s market position.

If you have an upcoming currency requirement 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 directly on mtv@currencies.co.uk

GBP/AUD Rates Spike Over 4 Cents (Matthew Vassallo)

It’s been a volatile few days for GBP/AUD exchange rates, with the Pound gaining unexpected ground yesterday. The pair moved over four cents during Wednesday’s trading, with the Pound moving through 1.86 at the high. This move was for the most part attributed to a 0.7% decline in Brent oil futures, which caused a major selloff of commodity based currencies, such as the AUD.

We have seen the start of a recovery during Thursday morning trading, with better than expected Australian employment data released overnight helping to move GBP/AUD back towards 1.85 on the exchange.

With a host of key data releases for the UK alter today, including the latest Bank of England (BoE) interest rate decision and monetary policy statement. We also have the NIESR’s Gross Domestic Product (GDP) estimate and then overnight the latest Reserve Bank of Australia (RBA) monetary policy statement. All of these are considered key market movers and I anticipate further spikes on GBP/AUD throughout the day.

If you have an upcoming currency requirement 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 directly on mtv@currencies.co.uk

Are GBP/AUD Rates Heading Back to 1.85? (Matthew Vassallo)

GBP/AUD rates have spiked during Wednesday morning’s trading, with the pair moving back through 1.84 on the exchange. It’s been a volatile few days for the currency pair, with positive moves early this week for the Pound, followed by a realignment for the AUD yesterday. Sterling benefitted from positive UK Manufacturing data on Monday, which helped push the Pound’s levels up.

The question now is whether this positive trend will continue and push GBP/AUD rates up through 1.85? Personally I still feel we will need to see a positive stance from the Bank of England (BoE) in terms of a prospective interest rate hike and we also need to consider That they will not want Sterling’s value to soar for fear of alienating our trade partners.

With a host of economic data releases for the UK tomorrow, along with Australian employment data being released overnight, we could see a defining move on GBP/AUD if data comes outside of expectations.

If you have an upcoming currency requirement 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 directly on mtv@currencies.co.uk

GBP/AUD Dips During Wednesday’s Trading (Matthew Vassallo)

GBP/AUD rates have dipped during Wednesday morning’s trading, as the markets ready themselves for the US FED interest rate decision and monetary policy statements this evening. It is widely anticipated that the FED will put an end to their Quantitative Easing (QE) programme, a decision which is likely to have huge knock on effects for the global market.

It is likely the markets are currently factoring this decision in to any rate movements, so if this decision is not made as predicted expect further volatility for GBP over the coming days. The reason the AUD is strengthening is that any decision by the FED to end their QE programme will be seen as a positive for the US economy. This in turn is likely to give investors more risk appetite and they will start buying some of the more riskier currencies, including the AUD.

If you have an upcoming currency requirement 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 directly on mtv@currencies.co.uk

Will GBP/AUD Rates Head Back Under 1.80? (Matthew Vassallo)

GBP/AUD rates have dipped during Wednesday’s trading, with the pair heading back under 1.83 on the exchange. GBP/AUD rates have remained range bound recently, fluctuating between 1.80-1.85. Improved Chinese economic data helped to steady any further AUD loses against GBP, following a very poor run which saw rates move from 1.70, right up to 1.83-1.84 in a short space of time.

This move was a clear reminder of how aggressive and quickly the currency markets can move and whilst I don’t expect Sterling’s momentum to continue at that pace, the AUD may struggle to make any significant inroads, unless there is a shift in market conditions.

It will be interesting to see the market reaction to tonight’s speech by Reserve Bank of Australia (RBA) governor Glen Stevens, along with Australian Business Confidence figures released overnight.

Personally I would be very tempted to take advantage of the current levels as any dip in the UK recovery, or indication that the Bank of England (BoE) may hold back an interest rate hike, we aere likely to see the AUD realign towards 1.75.

If you have an upcoming currency requirement 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 directly on mtv@currencies.co.uk

GBP/AUD Rates Dip During Tuesday’s Trading (Matthew Vassallo)

GBP/AUD rates have dipped again during Tuesday’s trading, with rates now floating between 1.82-1.83 on the exchange. This move is a continuation of yesterday’s spike and it does seem as if the AUD has started to realign itself after a poor recent run against GBP. This was to be expected following the aggressive move witnessed a couple of weeks ago when the Pound gained almost 15 cents against the AUD.

However, following the Reserve Bank of Australia (RBA) decision to keep their base interest rate on hold at 2.5% and their subsequent comments, we could find that today’s AUD strength does not last for long. Whilst rates were expected to be kept as they were, it was their accompanying statement that for me was key. RBA members indicated that they still felt the AUD was too strong against the major currencies, including the Pound. To me this is a key as its very rare that a central bank will divulge this information unless they anticipate it will help to counter their concerns and as such I would expect the AUD to weaken again because of it.

If you have an upcoming currency requirement 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 directly on mtv@currencies.co.uk