Tag Archives: GBPAUD

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! **

Will GBPAUD reach back to 1.70?

If you are holding pounds and looking to buy Australian dollars it has been a stressful period with the pound failing to spike as many had predicted on the back of the UK election. There was a belief the pound would rally to perhaps over 1.80, the Aussie having been on the back foot as Chinese data was failing to live up to expectation. Lately however the Chinese data is looking much better which, in conjunction with the pound sliding as the hung parliament divides opinion over the British pound, has seen the GBPAUD rate slip too. If you need to buy or sell Australian dollars making some plans around the next twist and turn is crucial since the current market is not pointing clearly in either direction.

We offer detailed insight and strategy to clients looking to move large volumes of currency around the world generally following property transactions or business transfers. This is because when moving such large volumes of say 50,000 GBP up to multi-millions a small difference in the exchange rate can mean a huge difference in the amount of currency you receive. Getting the timing and planning right is crucial to getting the best deals on the rates.

For clients looking towards the GBPAUD exchange rate pairing looking for better rates this week could offer some fresh opportunities with the latest fresh news over the UK’s political situation and also news relating to the Chinese economy. Since the Chinese economy is so closely linked to the Australian dollar keeping up to date with information here is crucial to getting the best rates. If you have a transfer to make this week has a number of releases which could see the GBPAUD rate move say 1 – 2 cents presenting a quick opportunity for savvy buyers and sellers!

For more information on the best rates and how to manage your exchange please speak to me Jonathan Watson by emailing jmw@currencies.co.uk. If there is anything I can help with please don’t hesitate to contact me directly.

Buying Australian rates boosted by softer Brexit murmurs (Joshua Privett)

The state of limbo we’ve been suffering with Sterling this week has show tentative signs of breaking as we head into the weekend, with buying Australian Dollar exchange rates rallying during Friday morning trading.

This prolonged period without clarification on Government policy towards such a sensitive issue as Brexit has left currency investors unsure what to do. There has been such little buying and selling activity involved around the Pound that GBP/AUD has been moored in the high 1.60’s since Monday.

This should all change next week.

The Government’s manifesto will be debated on in Parliament next week to be voted on on Thursday/Friday, before the close of June. Hints of a softer Brexit with Theresa May’s speech at the EU summit today have markets less concerned at the prospect of a tumultuous exit for the UK, and therefore Sterling saw a comforting boost in the morning.

End of week financial flows however halted Sterling’s rally. At the end of the week capital tends to be allocated in the more stable currencies. A camp which Sterling understandably hasn’t occupied for some time. So you tend to see Sterling selling off in favour of the likes of the US Dollar and Swiss France, with the Pound losing out through decreased demand in general.

But if it wasn’t for these clockwork trading patterns before the weekend, AUD sellers would have seen glimpses of what is expected to happen next week. A consolidation of this limbo period since the election, and confirmation of any softer approaches for the Brexit should both play well for Sterling’s value in the eyes of currency markets. Both have a high likelihood of occurring next week, even the Brexit Minister David Davis said as much.

So whilst Australian Dollar sellers are seeing higher urgency to act sooner rather than later in the final week of June, Australian Dollar buyers may consider waiting until the end of next week to secure their AUD purchase.

I strongly recommend that anyone with an Australian Dollar based currency requirement should contact me over the weekend whilst financial markets are closed on jjp@currencies.co.uk to discuss a strategy for your transfer aimed at maximising your currency return.

I have never had an issue beating the rates of exchange on offer elsewhere, so a brief conversation could save you significant sums of money on a prospective transfer.

Pound to Aussie Dollar range-bound, but where to next? (Joseph Wright)

The Pound to Aussie Dollar exchange rate has been trading between 1.66 and 1.68 for a few days now, as the pair appear to have consolidated below 1.70 in the wake of the disappointing election outcome for Sterling bulls.

As of yet there is no official agreement between the Conservatives and the Democratic Unionist Party (DUP) although speculation is mounting as to the amount the Conservatives will have to pay for the coalition, with some speculating amounts of up to £2bn.

Moving forward I’m expecting any news of the coalition to have a potential impact on the Pound to Aussie Dollar buying rate, which is where keeping in touch with us can really help as we’re able to act whenever there’s a big short term move.

Brexit negotiations are now also underway, which is another issue for the government to deal with along with the ongoing Grenfell Tower tragedy and the recent terrorist issues.

On the other hand the Aussie Dollar has been under pressure in recent weeks as the Chinese economy appears to be slowing, which is a negative for the value of AUD as the Australian and Chinese economies are key trading partners.

With both currencies coming pressure for different reasons, it could be that the weaker of the two that results in further price movement for the GBP/AUD pair.

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 can we expect next for GBPAUD currency rates?

Tonight is the latest RBA (Reserve Bank of Australia) Meeting Minutes which will provide further insight into the latest thoughts from the RBA with regard to the relative strength or weakness of the Australian dollar. If you are looking to make a currency exchange buying or selling the pound or Australian dollar then understanding the latest news here is critical to what kind of rates you might expect in the future. In assisting my clients with the timing of any transaction as well as the best rates of exchange this release will be critical to understanding what might happen next on the rates.

The pound has clearly weakened following political uncertainty in the UK, but news from the RBA (Reserve Bank of Australia) could easily change that. Generally speaking the market is predicting the outlook for the RBA to be one where they are gently leaning towards hiking interest rates although this is unlikely to be anytime soon. If you are buying Australian dollars in the future this would potentially mean the transfer becomes more expensive, if you are selling AUD to buy the pound, the rate could get better.

Timing is everything in the currency market and understanding what my or may not influence your exchange rate is key. With almost ten years of experience assisting clients looking to buy and sell the Australian dollar I am well placed to offer my clients up to date news on what will impact their exchange rate.

If you have a transfer to make buying or selling Australian dollars for pounds, it is fair to say a weaker pound could see this level slip lower into the 1.60’s. However the Queen’s speech and uncertainty over the UK election final result this week reminds us that events can quickly changes and lead to unexpected results.

For more information at no cost or obligation please speak to me Jonathan Watson by emailing jmw@currencies.co.uk. Thank you for reading and I look forward to hearing from you and assisting with your transfer.

Will the pound continue to fall against the Australian dollar (Dayle Littlejohn)

In the run up to the UK general election GBPAUD exchange rates remained buoyant around the mid 1.70s which was a surprise to the traders here as the pound was falling across the board against all of the major currencies. I put it down to the Australian dollar weakening due to iron prices and the slow down in China.

Once the general election exit polls were released the pound started to tumble against the Australian dollar and rates continued to fall once it was announced that Theresa May had not won an outright majority. GBPAUD exchange rates have dropped 8 cents since the election result which means if clients are converting 400,000 Australian dollars back to sterling they will receive an additional £10,800.

Looking further ahead I find it difficult to see how the pound will gain any momentum until a government has been formed. At present UK Prime Minister Theresa May is trying to form a minority government with the DUP. Many have questioned the alliance as some of the DUP policies and views seem controversial and not supported by the Conservatives.

Personally I believe a government will be formed in the upcoming days which could provide some stability for the pound. Thereafter Theresa May will turn her attention to Brexit negoations and with the election result a softer Brexit looks more likely which actually improve the pounds value as remaining a part of the single market could actually occur.

For Australian dollars sellers buying sterling, it appears China are going to continue to slow and economists are predicting iron ore prices will follow which will have a negative impact on the Australian dollar. The spike we have seen over the last 5 days may be worth taking advantage of.

If you are trading GBPAUD in the upcoming weeks, months or years and want to save money 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! **

 

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! **

London terror attack – 3/06/17 (Joshua Privett)

Once more on this website I must report a further terror attack on UK soil, the third since March. At the time of writing 7 people have been confirmed dead, in addition to the three attackers who have been shot dead by police, and 48 people are currently in hospital receiving treatment.

Discussing currency in these situations seems trivial, but the effect of this attack on the Pound’s value must be addressed, and the potential impact this may have on anyone wishing to use Pounds to buy Australian Dollars, or anyone wishing to purchase them using Australian Dollars in the near future.

Given patterns around the recent spate of horrific attacks, once the attack is proven to be contained, any noticeable reaction from currency markets recedes as well.

As this act of senseless violence has occured over a weekend, currency markets were not open to initially react to the news, and, as such, it is unlikely that we will see any direct reaction from currency markets once they reopen come Monday morning on GBP/AUD. Particularly since Theresa May has confirmed that the election will continue as scheduled.

With little economic data to be released this week, buying and selling Australian Dollar rates of exchange will largely be governed by the twists and turns of the UK election. This is because there is expected by be no change in the Australian interest rate decision overnight on Tuesday.

The most recent polls were released over the weekend and I have included them below.

Comres:
  • Conservatives 47
  • Labour 35
  • Comres adds that PM May’s personal approval rating has turned negative for the first time since becoming prime minister
Survation
  • Conservatives 40
  • Labour 39
  • The previous poll from this lot (back on May 21) showed a 12 point lead fro the Cons.
YouGov
  • Conservatives 42
  • Labour 38
  • Prior YouGov poll had the PM with 7 point lead, down to 4 now
  • You Gov project a 14 seat majority for May’s party
ORB
  • Conservatives 45
  • Labour 36
ICM
  • Conservatives 45
  • Labour 34
  • Cons ahead by 9 compared with 14 in this poll a week ago

 

Whilst there is still a large difference between the polling companies’ results, the momentum gained for Labour is clear, and this is why the Pound has been depreciating against the Australian Dollar recently.

With these last minute polls still showing a fair bit of difficulty for the Conservatives to achieve their Parliamentary majority, this uncertainty should continue to harm the Pound in the run-up to the election. I would expect a fairly gradual deterioration in GBP/AUD in the run-up to, and including, Thursday’s polling.

As such, anyone with an Australian Dollar buying requirement may be wise to secure their currency within a short period of the opening bell on Monday to avoid potentially swallowing distasteful rates later on in the week. 

I work for one of the longest running currency brokerages in the UK,  and I have never had an issue securing more competitive exchange rates than what is on offer elsewhere, and these current buying levels can be fixed in place for a future requirement. This is useful if you require currency later on this year, but do not wish to gamble on the election result improving your situation or making your transfer more expensive.

You can contact me over the weekend whilst markets are closed on jjp@currencies.co.uk and I will respond to you as soon as I am able with a quote and a tailored strategy for any of your upcoming transfers.

Sterling vs Australian dollar predictions (Dayle Littlejohn)

In recent weeks the pound has been falling against most of the major currencies however remains buoyant against the Australian dollar. The reason for the pounds decline is that the UK public will be visiting the polling stations once more to decide who will run the country for the next term. Past history tells us when there is an election the currency in question comes under pressure and therefore losing ground against its counterparts.

However the pound has performed relatively well against the Australian dollar as the Austrian dollar has problems of its own. It was only yesterday the Australian dollar took a battering due to further falls in iron iron prices, Australia’s largest export. Furthermore Westpac announced capital expenditure figures have disappointed and the Chinese manufacturing activity is slowing which has led to the two per cent drop in iron ore.

As there is only 6 days to the UK general election, this week I expect the pound to come under further pressure and GBPAUD exchange rates to fall back towards 1.70. Polls are narrowing and suggesting that the Conservative party won’t win a majority however I personally believe they will pull through.

If I were buying Australian dollars I would not put all of my eggs in one basket and would therefore purchase 50% before the election and 50% in the future just in case we see another shock announcement like we did 12 months ago when the public decided to vote out of the European Union.

For Australian dollar sellers the slowdown in China is not going away and I believe this will continue in the months and in fact years to come. Therefore if I had Australian dollars I expect rates to be at their most volatile towards the end of the week on the eve of the election and thats when I would make the conversion.

If you need to buy or sell Australian dollars and would like to save as much money as possible, feel free to email me with your requirements and I will respond with the process of using our company drl@currencies.co.uk. As a company we pride ourselves in the ability to get you a better exchange rate than your current currency provider or your bank. In addition we can outline your options and the potential future events, which will impact your exchange rate. This will help you to make informed and educated decisions.