Tag Archives: sterling exchange rates

GBP AUD Exchange Rates – Brexit Twists Ahead (James Lovick)

The pound has crashed against the Australian dollar as well as all of the major currencies after a monumental day on the markets with the UK quarterly inflation report and Bank of England interest rate decision followed by the Banks governor Mark Carney speaking. As if this wasn’t enough there was also a white paper surrounding the terms of Brexit which was produced in Parliament this afternoon.

The pound was already on the back foot against the dollar even before today’s events although GBP AUD has fallen by over 2% throughout the day. Those clients needing to sell Australian dollars would be wise to start considering their options as today has presented an excellent opportunity to convert. On a transfer of £200,000 equivalent the difference is over £4000 extra now compared to yesterday.

Sterling exchange rates may have performed better on the news that economic growth will rise to 2% in the UK as per the Bank of England’s forecast. However it was the news of further Brexit twists and turns which may have poured cold water on the pound.

Data is light on Friday with no Australian economic data and only services data for the UK .UK services as per the Purchasing managers Index highlights how well the engine room of the British economy is performing and any improvement may lend support to the pound.
However it is politics which is the biggest driving force at present for pound Australian dollar exchange rates. As this white paper is reviewed by politicians as well as a further vote in the House of Lords there is likely to be even more volatility to come in the next few weeks. Those clients with a pending requirement should be aware that a new date of March 9th has been proposed for Brexit to finally take place.

If you would like further information on sterling exchange rates or any of the major currencies and to discuss how we can assist then please feel free to contact me on 0044 1494 787 478 and ask one of the team for James. Alternatively, I can be emailed directly on jll@currencies.co.uk

Will the Pound Climb Higher against the Australian Dollar? (James Lovick)

The pound has seen a good rally over the last four weeks against the Australian dollar which has largely come about by the Trump election victory. In my view this very much opens the door for a trade agreement between Britain and the US whilst also giving other options in the Brexit negotiations which perhaps weren’t available before under the Obama administration. These options for trade probably wouldn’t be around with a Clinton administration either. However the Trump benefits seem to be wearing off for sterling exchange rates and the pound is hitting resistance at these higher levels – Those Brexit jitters are for the moment keeping a lid on the price of sterling.

GBP AUD may have a little further to go through considering the US Federal Reserve raised interest rates by 0.25% last night. This is likely to result in flows of funds returning to the US where interest rates are now higher and the likes of the Aussie and kiwi may reduce in value. The Fed have signalled there may be three rate hikes in 2017 so this is going to become extremely topical.

For this reason those clients needing to sell Australian dollars would be wise to take this into account as the dollar could weaken further. However those client selling Australian dollars could be in luck if the British government should win the appeal surrounding Brexit at the Supreme Court where a verdict is due in January. This in my view would result in  a fairly big fall in the value of the pound presenting another excellent opportunity to sell dollars.

If you have an upcoming currency requirement either buying or selling Australian dollars 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 on 0044 1494 787 478 and ask one of the team for James. Alternatively, I can be emailed directly on jll@currencies.co.uk

Sterling Exchange Rates Slip Back Below 1.70 (James Lovick)

The pound is still hovering just below the 1.70 mark for GBP AUD having slipped from a high of 1.7154 earlier in the week. The pound has been largely driven higher after the Trump victory which has proven to be a major boost for sterling exchange rates. The perceived better outlook with a potential trade deal between Britain and the US is the reason in my view for this sterling strength.

What are the main factors driving GBP AUD?

  1. UK Brexit & Politics
  2. US Fed Interest Rate Decision 14th December!

This week in Britain has been largely dominated with the Supreme Court appeal on whether the government must consult parliament before invoking Article 50. Although a verdict is not expected until January the fact that the case has been shown live throughout the entire appeal does give some clues as to the final outcome. The pound has found support as the markets appear to be leaning towards the government losing the appeal at the Supreme Court.

This ultimately may result in a softer Brexit which the markets see as a safer option for the British economy. It is evident that there are still many politicians including ex-Prime Minister Tony Blair who are desperate to push for a softer Brexit and it is this will in my view which is helping to prop up the pound.

The future for the Australian dollar meanwhile is uncertain as so much depends on the next US interest rate decision being held next Wednesday. My view remain that the US Fed will raise interest rates by 0.25% marking a one year anniversary from the last hike. This is likely to be negative for the dollar as there is likely to be a flight of funds to the US dollar where interest rates will potentially be higher. There is likely to be high volatility after the announcement and it has the potential to be a major market mover creating new direction for the Aussie.

Clients who are holding sterling are seeing a very volatile period at the moment which is unlikely to change any time soon although sterling still appears to be on the up. If you 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 on 0044 1494 787 478 and ask one of the team for James. Alternatively, I can be emailed directly on jll@currencies.co.uk

GBP AUD Breaks 1.70 Before Retreating (James Lovick)

The pound has rocketed against all of the major currencies including the Australian dollar today breaking over 1.70 for GBP AUD before retreating in afternoon trade.

Sterling exchange rates have a had a good week following strong mortgage approvals data earlier on Tuesday highlighting a buoyant housing market which is a key feature of the British economy and is usually one of the first areas to struggle in uncertain times.

The strong mortgage approvals from the Bank of England give some reassurances to the market that the UK economy is still performing well in the aftermath of the vote to leave the EU.

The lift today for sterling exchange rates appears to have come from comments from Brexit Secretary David Davis who suggested that he was open to paying into an EU budget to maintain access to the single market. This represents a so called soft Brexit which is perceived as better for the pound and the markets took this news well.

Events Next Week – GBP AUD

Clients needing to buy Australian dollars should be aware of two major events taking place imminently. The first is the Italian referendum on constitutional reform this Sunday. A no vote could work in the pounds favour in this instance.

The second event is the Supreme Court ruling on whether UK Prime Minister Theresa May must consult Parliament to push through Article 50. Should Theresa May lose the appeal then the pound is likely to gain across all of the major currencies as the process of Brexit will be frustrated and potentially delayed.

A win by Theresa May would mean a tougher Brexit more likely which could see the pound weaken.

If you have an upcoming currency requirement either buying or selling Australian dollars 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 on 0044 1494 787 478 and ask one of the team for James. Alternatively, I can be emailed directly on jll@currencies.co.uk

Sterling Exchange Rates Climb Higher against Australian Dollar (James Lovick)

The pound has slipped against the Australian dollar losing 0.3% although still maintaining the higher ground seen in the last two weeks. Rates for GBP AUD have 1.70 in sight and my view remains that this is likely to be seen.

The pound performed well yesterday after a confident and calm Autumn Statement delivered by Chancellor of the Exchequer Phillip Hammond. This could have been a different story considering the coverage of the very high levels of debt that the government has to service but the fact that economic growth in the UK is expected to be amongst the highest in Europe is helping support sterling.

UK GDP numbers for the third quarter are released tomorrow morning and have the potential to create high volatility. Anything steady or stronger than expected could see the pound rally.

Politics Driving Sterling Exchange Rates

UK mortgage approvals this morning also arrived higher than expected providing another boost for the British economy at a time when the doom and gloom surrounding Brexit has been unsurmountable. It was only today that ex-Prime Minister Tony Blair came out and stated that Brexit is stoppable and peddled more Brexit doom. Hasn’t this man done enough damage?

Like it or not, politics surrounding Brexit and Trump is the order of the day for the sterling exchange rates and the Supreme Court ruling in December on whether Prime Minister Theresa May must consult Parliament to Invoke Article 50 is essential. This event for me carries a sizeable risk for sterling. The markets are likely to perceive a government win at the Supreme Court as a sign of a hard Brexit and the pound would likely fall in this scenario although there are other  potential scenarios as well.

Clients who are holding sterling or dollars are seeing some much better times after all the Brexit uncertainty to date. There may be a little bit further to go for the pound although there will inevitably be more hurdles surrounding Brexit as outline above. The Supreme Court case commences 5th December 2016 and it would pay to consider all your options well before this date which is now fast approaching.

If you have an upcoming currency requirement either buying or selling Australian dollars 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 on 0044 1494 787 478 and ask one of the team for James. Alternatively, I can be emailed directly on jll@currencies.co.uk

Buying Australian Dollars – Rates Back Over 1.67 after Strong UK Retail Sales (James Lovick)

Sterling exchange rates have rallied higher again today against all of the major currencies including the Australian dollar with rates back over 1.67 for GBP AUD. UK retail sales number came in stronger than expected and were bolstered by Halloween and the colder weather. Retail sales for October jumped 1.9% from September creating a good spike for the pound.

After the sharp fall in the price of the pound against all of the major currencies on Tuesday the pound has recovered nearly all of that lost ground. The supposed leaked government report turned out to be nothing credible at all and came from a private accountancy firm. This confirmation from government has also helped see the pound rally higher.

Data is light for the both the UK and Australia as we end the week so British politics is likely to continue to dominate the markets. Any news Brexit related is having an immediate and direct impact on the price of sterling so expect more volatility to come as the days and weeks unfold.

Eyes now look forward to a raft of US economic data next week which will give some idea as to how well the US economy is performing. What happens in the US is very topical for the Australian dollar as the currency is impacted by events in the US. We are expecting another interest rate hike in the US imminently and my view remains we will most likely still see that hike in December. This is good news for the US dollar but bad news for the Australian dollar.

Those clients who need to sell Australian dollars would be wise to consider moving before the December meeting in 3 weeks’ time. Those clients who are buying Australian dollars could see a win opportunity after the Fed meeting if Janet Yellen does finally raise interest rates.

Clients who are holding sterling are finally seeing some better times after all the Brexit uncertainty. There may be a little bit further to go for the pound although there will inevitably be more problems to come in the form of Brexit.

If you have an upcoming currency requirement either buying or selling 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 on 0044 1494 787 478 and ask one of the team for James. Alternatively, I can be emailed directly on jll@currencies.co.uk

Sterling Rockets for 2nd day Running after Trump Presidential Win (James Lovick)

The pound has seen an excellent rally against the Australian dollar for the second day running following the US Presidential election win by Donald Trump just yesterday. The pound has made rapid and substantial gains in a very short period of time against all of the major currencies including the Aussie dollar with rates having broken over 1.65 for GBP AUD. It should not be understated how much the pound is rallying at present. Those clients who need to sell Australian dollars would be very wise to consider moving sooner rather than later and take advantage of the current excellent levels.

Why is the pound strengthening so much all of a sudden?

Sterling has found a new wave of support following the US election. The pound seems to have found favour in my view due to some of the similarities between Brexit and the Trump win. Trump has openly expressed his wish to do a trade deal with Britain which is completely different from the stance that President Obama took in his final months as President. UK Prime Minister Theresa May has also maintained a professional line with the US election whereas many European leaders actively promoted Hilary Clinton.

Considering Nigel Farage shared a platform with Donald Trump in the race to the White House and was the only politician to do so would suggest Britain and the US may be able forge a stronger relationship going forward. These are very interesting times an there are many implications from this.

Sterling exchange rates initially saw a rocky start to the day against most major currencies yesterday but good gains were made early on against the Australian dollar. The Australian dollar could see some further weakness going forward as the commodity currencies normally perform worse in times of global and economic and political uncertainty. A weakening in the Aussie is also welcome news for the Reserve Bank of Australia. The Trump win appears to have taken care of that for them.

The Brexit jitters will no doubt keep the pressure on the pound but this Presidential outcome has so far has seen a good win opportunity which is still going strong for those holding pounds. If you 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 on 0044 1494 787 478 and ask one of the team for James. Alternatively, I can be emailed directly on jll@currencies.co.uk

Sterling Rockets after British High Court Case (James Lovick)

The pound has surged against the Australian dollar after major events in Britain today have helped cause a strengthening in sterling exchange rates across the board.

The news that the British government must consult parliament before invoking Article 50 was the trigger for a sharp spike higher for GBP AUD as a “soft Brexit” seems more likely, for the moment anyway. The news is pretty monumental as it means that UK Prime Minister has today lost a high court case and must now seek approval from parliament before invoking Article 50.

The government have signalled however that they will appeal the case at the Supreme Court. A slot has already been reserved to hear the case in early December. Clients with a currency requirement should expect more fireworks in the run up to this event and should be very clearly marked in the diary.

The Bank of England Governor Mark Carney also announced the latest interest rate decision today where rates were held and no changes to Quantitative Easing were made. He caused a rally in the pound though by acknowledging a higher inflation outlook and hinted that interest rates could equally jump higher rather than down.

UK services Purchasing Managers Index data released this morning reached the highest level since January this year which also provided a boost.

Australian retail sales data are released tomorrow morning but as far as GBP AUD is concerned it is largely a sterling story.

Clients who are holding sterling are seeing a very volatile period at the moment but there may be some light at the end of the tunnel. The Brexit jitters will no doubt keep the pressure on the pound. If you 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 on 0044 1494 787 478 and ask one of the team for James. Alternatively, I can be emailed directly on jll@currencies.co.uk

Best time to sell Australian Dollars since November 2013 (Tom Holian)

Sterling has continued to weaken against all major currencies since the Brexit and in particular we have seen Sterling drop to its lowest level to buy Australian Dollars since November 2013.

Even in light of the RBA cutting interest rates last week this has done nothing to weaken the Australian Dollar as the pressure continues to increase on the value of Sterling.

The Bank of England cut interest rates for the first time since 2009 to their lowest rate in history at just 0.25% and this has caused Sterling to lose value.

Even with Australian interest rates having been cut they are still more attractive than over here in the UK.

The increase of Quantitative Easing has also caused investor confidence to fall in the UK and with consumer confidence at its lowest level since 1990 things are not looking good for Sterling exchange rates.

The Interbank level has fallen below 1.70 as predicted in my previous article and we could potentially see further losses for Sterling to come.

The positive news that keeps coming out from the US is also keeping commodity based currencies very strong and with the US potentially looking at increasing interest rates at some point this could also help the Australian Dollar.

On Tuesday the Reserve Bank of Australia releases the minutes from their latest meeting and this will be closely followed by unemployment data released on Thursday.

Any signs of further Australian interest rate cuts or a slowdown in the jobs market could see a reversal of the recent trend of Australian Dollar strength so if you’re looking to convert Australian Dollars into Sterling now could be seen as a good window of opportunity.

If you have a currency transfer to make and want to save money on exchange rates compared to using your own bank then contact me directly for a free quote. Tom Holian teh@currencies.co.uk

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Sterling Continues To Strengthen against the Australian Dollar After New British Government is Formed (James Lovick)

GBP AUD has now found a degree of support as the markets begin to settle down following the decision that Britain will now withdraw from the European Union. Sterling exchange rates had crashed immediately following the outcome amidst both the economic and political uncertainty.

What has made this crisis very different from the financial crisis of 2008 for example is that this time the major uncertainty has been on the political side.

With the appointment of Theresa May as Prime Minister last week and a new cabinet in place, the markets have effectively been leap frogged by 2 months which had been the initial expectation for a new Prime Minister to be in place. As such UK has now been given that political clarity it so desperately needed which is why the pound has started to soar higher.

Will the pound climb higher against the Australian dollar?

Whilst Britain is actively discussing trade deals with potential trade partners which is very positive this will however take time and so there is a degree of uncertainty that goes with this. At the same time whilst Britain has not invoked Article 50 yet, when it does so, the pound is likely to lose ground simply for the reason that Britain will be going past the point of no return.

As things stand it is likely to be invoked at the start of 2017 although there are no guarantees as to when it will actually happen. Pressure is also likely to mount from EU leaders and again global politics will come into play.

For the moment the mood has turned unquestionably upbeat in Britain since Theresa May has become Prime Minister. The government also looks and feels strong despite some global criticism of Boris Johnson’s appointment as Secretary of State. With a prospective major takeover of British owned ARM Holdings it is clear that the UK is very much open for business on the global level and this feel good factor should play into sterling strength.

A question mark does hang over the Bank of England meeting in August where it is unclear at this stage whether the central bank will cut interest rates. The markets had been expecting a rate cut last week which did not materialise. A cut in August is now widely expected.

The issue the Bank of England now has is to do with inflation and the strategy is to look at the inflation outlook next month in order to decide the course of action. A pickup in inflation could actually be a serious concern and any cut could push inflation higher which would be undesirable. Expect major market volatility at that meeting next month!

Selling Australian Dollars?

For anyone selling Australian dollars there is an excellent opportunity currently available which has come about on the whole from events in the UK as far as AUD GBP is concerned. There is talk that Reserve Bank of Australia (RBA) may be looking to cut interest rates further which would have the effect of weakening the dollar. After the election in Australia is now out of the way the RBA may look to cut at the August meeting so sellers may wish to act sooner rather than later.

If you find this post useful and you have a currency requirement either now or in the future then it is well worth you getting in contact with me (James Lovick) personally. I work for a brokerage that has won numerous awards both for our rates and customer service and I would be quite surprised if I could not better the rates you can achieve with your current choice of provider.

It only takes a moment to get in touch and you may save thousands of Pounds so feel free to email me (James Lovick) on jll@currencies.co.uk with a description of your requirement and a contact number and I will contact you as soon as I can.