Tag Archives: Sterling strength

Further falls for the Australian dollar (Dayle Littlejohn)

Many economists globally are expecting the Australian dollar to come under further pressure for the rest of the year as the US begin to reverse the bad run seen over the last 6 months. It’s been widely publicized that the Federal Reserve are likely to raise interest rates in December. If this materializes the overpriced Australian dollar is likely to devalue as currency speculators move out of the risky commodity currency and into the safe haven US dollar for higher returns on their investments.

In regards to GBPAUD exchange rates the pound has been losing momentum against the Australian dollar over the last 5 trading days as yearly GDP numbers fell to 1.5% from 1.7%, mortgage approvals were down by 3,000, markit manufacturing fell from 56.9 to 55.9 and PMI construction fell from 51.1 to 48.1. However the Bank of England are suggesting an interest rate hike could occur as early as next month which could provide further opportunity for Austrian dollar buyers.

This evening Australia are set to release retail sales numbers, trade balance, including import and export numbers and RBA assistant Governor Debelle’s speech. For more information on how these data releases impacted the market feel free to drop me an email and I will respond tomorrow morning.

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.

 

 

Will Brexit uncertainties limit a Pound to Aussie Dollar recovery? (Joseph Wright)

The Pound to Aussie Dollar exchange rate is currently trading at the top end of its post-brexit vote lows at the moment, with it’s multi-month low sitting at 1.6171.

It has traded in the late 1.50’s since the vote so now is an important time as we’ll see whether the pair will fall below this mark and hit new brexit lows as the Euro has over the past week.

Under normal circumstances I would expect to see future Sterling gains against the Aussie Dollar due to the overheating housing market concerns, as well as the RBA’s reluctance to amend interest rates to counter this but due to fears surrounding the UK economy in future, I’m not expecting to see the Pound recover back to levels of 1.70 – 1.76 that we saw earlier this year.

Many current financial headlines are centered around the Brexit negotiations and how the European Commission is becoming frustrated with the UK’s lack of clarity regarding the exit strategy, with the UK not willing to show its hand until the Brexit Bill is confirmed.

If you would like to be kept updated regarding any short-term price movements involving the Pound and the Aussie Dollar, do feel free to get in touch with me and register your interest, as we’re able to keep clients informed.

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.

 

Pound to Aussie Dollar rate consolidates above 1.70, will the Pound manage to hit 1.80 this year? (Joseph Wright)

The price movement between the Pound and the Aussie has been interesting today, and may offer those planning a currency conversion between the pair with a indication of what to expect in future.

Sterling exchange rates came under pressure across the board during today’s trading session as late last night a YouGov poll suggested that Theresa May’s (the current UK prime Minister) Conservative Party may lose its majority in the upcoming election, and this political uncertainty is weighing on the Pounds value as is often the case.

Interestingly the currency didn’t come under pressure against the Aussie Dollar, as the currency appears to be under pressure at the moment which leads me to believe that if the gap between the Labour Party and the Conservative Party in the UK widens, we can expect to see the Pound make up ground on the Aussie Dollar and maybe even breach the 8-month high of 1.7635 it hit recently and trade towards 1.80.

The Aussie Dollar has come under pressure since China was downgraded by Moody’s earlier this month, as the Chinese economy appears to be slowing which isn’t a positive sign for the Australian economy due to the two countries close trading ties.

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.

Pound to Aussie Dollar rate hits a new 2017 high as inflation data disappoints, will the trend continue? (Joseph Wright)

The Pound has hit a new high against the Aussie Dollar today, as the pair have hit 1.7220 at one stage during today’s trading session.

The upward movement for the Pound begun early mostly due to Aussie Dollar weakness, as in the early hours of this morning the Australian inflation data came out worse than expected on both an annual and monthly basis albeit not drastically.

At the same time Sterling has performed well across the board during today’s trading session and at the time of writing the currency is up against all major currency pairs.

There has been talk of the Australian economy slowing in recent months, and with the US Fed Reserve now likely to continue to raise interest rates throughout the year I think the Aussie may end up trading quite considerably lower against the Pound as the year progresses. An increasing interest rate in the US could be bad news for the Australian Dollar as its likely that investors would rather hold their funds in the US due to the higher level of security it offers.

Limited demand for the Aussie Dollar is the reason I think we could see the GBP to AUD rate improve as the year goes on, but I do think that if the conservatives in the UK don’t win the election in June we could see another sell-off for the Pound.

If you are planning to make a currency exchange involving the Pound and the Aussie Dollar, it’s well worth your time getting in contact with me on jxw@currencies.co.uk in order to ensure you make a well informed decision on when to make that particular transfer, as well as benefiting from highly competitive exchange rates from one of the UK’s leading foreign currency brokerages. Just provide me with a basic outline of your currency requirement and I will be back in touch with you as soon as possible.

For how long will the GBPAUD rate remain above 1.70?

The pound to Australian dollar rate has risen above 1.70 which is presenting an excellent short term opportunity for clients with an Australian dollar buying requirement in the future. Sterling is potentially about to hit a brick wall with the UK elections but more worrying might be the likelihood of an interest rate cut in Australia. Next week is the RBA Interest Rate decision which could see a much weaker Aussie dollar so if you have Aussies to sell next week might be something to avoid!

I am expecting a very busy period in the next two weeks on GBPAUD exchange rates as investors get close to understanding just what the RBA (Reserve Bank of Australia) plan in the future for their interest rates. Whilst unlikely they will actually make a cut there is a real chance the RBA will be looking to see a weaker Australian dollar and if there remain concerns over the economy, particularly jobs, the RBA will want to cut sooner than later.

Overall levels to buy Australian dollars are now much higher than many believed a few weeks ago. The shock announcement of the snap UK General Election has seen the pound rise but this is unlikely to last too long. Typically a General Election leads to market uncertainty which can see a currency weaker. I have worked in this industry for almost ten years and this will be the third General Election I have seen. The last two both saw a weaker pound in the run-up to the vote which might be an opportunity for clients selling Australian dollars to buy the pound.

If you have a transaction in the coming weeks and months then making some plans sooner rather than later is the best way to navigate the uncertainty and volatility we are likely to experience. For more information at no cost or obligation please do feel free to get in touch to get an overview of the market and all of your options. Please email jmw@currencies.co.uk to learn more about the market and all of your options.

Will the Pound hold onto its recent gains and remain above 1.70 versus the Australian Dollar? (Joseph Wright)

The Aussie Dollar has lost quite a lot of value against the pound recently, making converting Pounds into Aussie Dollars a much more attractive proposition.

All major currencies have lost value against the Pound in recent weeks as the clarity of the Brexit plan and the snap election called by Theresa May (UK Prime Minister) have offered the UK economy some much needed certainty which has resulted in a boost the Pounds value.

Sterling is currently trading at 2017 highs against most major currency pairs, and those planning on making a Pound to Aussie transfer may wish to consider that the Aussie Dollar has been losing value against the US Dollar as well as against Sterling, which suggests to me that the currency is coming under pressure generally speaking.

It’s for this reason I’m expecting to see the Pound to Aussie exchange rate continue to climb and consolidate above 1.70, but Sterling sellers must be aware that the currency could be vulnerable should it become public that trade negotiations are going badly.

Economic data out of the UK is also becoming increasingly more important, as the currency has been driven mostly by political unfoldings for the past year whereas investors are now keen to keep a close eye out on how the UK economy is performing during these sensitive times. If you would like to be kept updated regarding these events do feel free to get in touch.

If you are planning to make a currency exchange involving the Pound and another foreign currency, it’s well worth your time getting in contact with me on jxw@currencies.co.uk in order to ensure you make a well informed decision on when to make that particular transfer, as well as benefiting from highly competitive exchange rates from one of the UK’s leading foreign currency brokerages. Just provide me with a basic outline of your currency requirement and I will be back in touch with you as soon as possible.

GBP/AUD gains in the lead up to Brexit’s official start, where to next for GBP/AUD? (Joseph Wright)

Investor fears surrounding the UK economy appear to have waned over the past week or so, as the Pound has once again gained across the board of major currency pairs during today’s trading session.

Those converting Aussie Dollars into Pounds are seeing the exchange rates offered weaken on almost a daily basis at the moment. At the beginning of last week the mid-market rate sat at 0.6250 whereas it’s currently trading at 0.6066, losing almost 2 cents in a short period of time.

Personally, I’m not expecting to see the Pound sold off heavily once the UK makes its intentions to leave the EU official. The Brexit is now arguably priced into the Pound’s value and I think the reason GBP/AUD has risen quite substantially is due to both the certainty the deadline date of the 29th of March has given the markets, as well as the likelihood of future interest rate  changes from both the Bank of England and Reserve Bank of Australia.

The rise in US interest rates has also limited demand for the Aussie Dollar as investors switch funds from the high yielding Aussie Dollar and into the safe haven currency of the US Dollar.

The BoE’s next interest rate change is looking like it will be a rise to counter rising inflation, so moving forward I’m expecting to see the GBP/AUD rate test 1.70 as opposed to 1.60. I think the potential downside for Sterling’s value could come from a breakdown in trade negotiations as the Brexit begins so those hoping the Pound climbs further from here should close attention to this topic.

If you are planning to make a currency exchange involving the Pound and the Aussie Dollar, it’s well worth your time getting in contact with me on jxw@currencies.co.uk in order to ensure you make a well informed decision on when to make that particular transfer, as well as benefiting from highly competitive exchange rates from one of the UK’s leading foreign currency brokerages. Just provide me with a basic outline of your currency requirement and I will be back in touch with you as soon as possible.

What can we expect from the Australian dollar in 2017?

GBPAUD exchange rates have risen to soem of the best levels since September trading above the critical 1.70 level of resistance. So what economic data is due in the coming weeks and months and what can we expect next for the GBPAUD exchange rate? Personally I expect some big swings but do not foresee any movement outside of the recent ranges. If you missed an opportunity on this pair in 2016 you might get another shot this year, make sure you keep in contact with me to be kept informed.

The pound is of course the currency most in spotlight of the two as investors eagerly anticipate the outcome of the Supreme Court decision due any day now. I expect this will lead to GBP strength which might push us as high as 1.75. The good news will in my opinion not last long however as we then look towards the next hard data on the UK and serious questions are raised over just what Brexit means. I would predict a lower level between now and the end of March (when Theresa May has promised to trigger Article 50) of 1.60. October saw GBPAUD sink to just below 1.60 and I would expect the rate to find its way down to this level again in the coming weeks and months.

On the Aussie side we could see some weakness too but I expect improved Chinese economic data and increased global confidence to help support the Australian economy. Whilst there is a belief that the Trump factor weakens the Aussie as investors liquidate AUD for USD, I think economic buoyancy in the Asian region as a result of the ‘Trump’ effect will actually help increase AUD strength. Just look at the data overnight Chinese Manufacturing PMI came in better than expected.

Don’t get me wrong China is still a risk factor, we could see some big problems later in the year. But personally I believe the economic uncertainty in the UK poses a bigger threat to the GBPAUD exchange rate.

If you have a currency exchange involving buying or selling the pound or Australian dollar there are numerous political and economic events up ahead that will effect your exchange rate. We are here to help with the planning and execution of any deals you will need to make plus offer a superior exchange rate better than the competition.

For more information at no cost or obligation please speak to me Jonathan by emailing jmw@currencies.co.uk

Pound to Australian Dollar rate drops after markets are disappointed with today’s UK data releases (Joseph Wright)

Investors have adopted a bearish tone towards the Pound over the past few trading sessions, as not even poor employment data out of Australia could push the GBP/AUD upward over the days session.

Sterling had got off to a good start after Aussie Dollar weakness due to the news release down under early this morning, but it’s since dropped by almost 2 cents as Tuesdays weak Inflation data is continuing to weigh on the Pounds value.

Personally, I think that anyone with a currency requirement involving the Pound should be aware of the negative effects of Tuesdays figure on sentiment towards the UK economy and therefore, the Pound. Inflation is measured by the Consumer Price Index and the CPI figure came out below economists expectations and this has dampened any remnants of positive sentiment towards the UK economy at present.

Today the UK released some better than expected Retail Sales Figures, yet despite beating economists expectations the Pound has still struggled to gain any positive momentum and I think this is an indication of the health of the Pound at the moment.

I expect the Pound to fall once again as there is still room for for profit taking after it’s upward movement from the low 1.70’s over the recent months since the Brexit vote. At the same time either the Bank of England or the Reserve Bank of Australia could cut interest rates once again so anyone with a currency requirement involving both currencies should be aware of this.

If you want to be kept up to date on the markets and you would also like to ensure that you are getting the very top levels of exchange for an imminent currency transfer or even a longer term one then I can help you with this.

Not only do we give clients up to date market information but we all work for one of the largest and longest serving currency brokerages in the U.K, so even if you have dealt with your current broker or bank for a long time I would be surprised if I could not show you a saving over what they are offering you – You can email me (Joseph Wright) directly on jxw@currencies.co.uk and I will be more than happy to contact you personally to discuss the various options we have available to you.

 

 

 

Sterling is approaching it’s post-brexit vote high as UK economic output continues to impress (Joseph Wright)

Why has the Pound been gaining?

Those holding British Pound’s and waiting for the right time to convert them into Aussie Dollars have been dealt a favourable hand recently, as over the past month and particularly over the past week the currency has gone from strength to strength.

The impetus driving these gains have been 3 key economic news releases in the UK which anyone with a Sterling based currency requirement should be aware of. Surveys carried out by renowned economic data company, Markit, have shown that business confidence in the UK has shown a dramatic turnaround in the space of a month, demonstrating that the UK economy isn’t performing in the terrible fashion we were warned it would.

Whilst confidence in the construction sector beat estimates the improvement in manufacturing conditions has improved by the biggest level in 25 years, whilst the services sector posted it’s biggest gain on record. The improvement in sentiment towards the services sector is perhaps the most significant as the sector makes up over two thirds of the UK economy.

How does this effect my currency exchange?

I think those planning on converting their Pounds for Aussie Dollars will need to put last years exchange rates to the back of their minds I personally I cannot foresee the exchange rates hitting the 2.00 level for some considerable time. The 7 cent gain for the Pound may well be worth taking advantage of, particularly on larger deals as a return to disappointing data could see the Pounds gains scuppered quickly, investors are likely to react quickly to negative news out of the UK due to it’s new trading conditions and planned removal from the EU, as it’s a move financial markets were originally hoping wouldn’t happen.

Why get in contact?

Our specialist currency brokerage offers award winning exchange rates and I’ll be happy to compare our rates with your banks or current providers. We’re here to undercut their rates but our service goes further than that, as we’re also here to help you with the timings of your trades. If you would like a quote or to discuss a planned currency requirement feel free to contact me (Joseph) on jxw@currencies.co.uk with an outline of your plans. I’m one of the senior currency brokers at a regulated UK based currency brokerage that has been around for almost 17 years.