Tag Archives: sterling

How high could GBPAUD rates go?

The pound to Australian dollar exchange rates has been touching fresh highs as the pound rises and the Australian dollar weakens. A key factor in this trend has been the shift on the US dollar and the UK with interest rate hikes since both the UK and US are looking to raise interest rates whilst the Australian dollar has been weaker because there are no hikes planned.

This trend seems likely to continue in the weeks ahead as we learn more around the Bank of England who appear very keen to hike interest rates in the future. This will be data dependent but the path ahead is looking clearer which will only help the pound further in the future. The same too is definitely true of the US dollar and the US Federal Reserve who are likely to raise rates up to three more times this year.

As the US interest rate is higher now than the Australian interest rate it makes less sense to hold Australian dollars than US dollars. This has seen a big shift in USDAUD exchange rates which is weighing the Aussie dollar down against the pound and presenting much better opportunities to buy AUD with sterling.

The next really key news is this Thursday with the latest UK GDP (Gross Domestic Product) data which could influence GBPAUD rates. I don’t think this will be a majorly important release but next week could see increased volatility with the latest Australian interest rate decision and important US Non-Farm Payroll data released.

I would not be surprised to GBPAUD pushing higher and we could easily hit 1.90 or the high and mid 1.80’s in April. If you are selling Australian dollars to buy pounds moving sooner than later seems the best bet. Otherwise targetting a more beneficial rate on any spikes might prove a profitable and worthy approach.

If you have any transfer buying or selling Australian dollars then understanding the latest news and trends can help you to maximise your rate by trading at the right time. For more information please speak to me Jonathan Watson by emailing jmw@currencies.co.uk.

Thank you for reading and I hope like our website and information.

 

Best rates to buy AUD with GBP in 21 months!

The pound to Australian dollar exchange rate has risen to fresh highs, largely owing to a stronger pound. The outlook for the pound against the Australian dollar is now much better as progress on Brexit and confirmation of a transitional deal helps the pound to rise. The Australian dollar could come under further pressure this week as central banks in the UK and US are in focus.

Overnight the Reserve Bank of Australia Minutes have been released which has seen the Australian dollar relatively unchanged, if you need to buy or sell Australian dollars against pounds the markets appears that it will be favouring the pound for this week anyway. Another major factor this week will be what happens with the US interest rate decision on Wednesday evening, this is when the US dollar might rise.

The relationship of the US dollar to the Australian dollar is very important and one that will see the big movements on GBPAUD and EURAUD too. When the US dollar rises it will often lead to the Australian dollar weakening too which gives the better opportunities to buy AUD with sterling.

There is a real belief that we could see further improvements for AUD buyers this week if the US Federal Reserve are positive in their outlook on interest rates. The pound is now at some of the best levels to buy Australian dollars since the Referendum 2016, this might well see the pound stronger further if more Brexit progress is announced.

For more information at no cost or obligation on the best ratesand timing to buy Australian dollars with pounds, please contact me Jonathan Watson by emailing jmw@currencies.co.uk.

Predictions of a higher GBP/AUD rate mount as Brexit transitional deal hopes grow (Joseph Wright)

The Pound to Australian Dollar exchange rate climbed during today’s trading session, with the pair now trading almost at the very top of the current trend.

The mid-market level for the pair hasn’t breached 1.80 in some time but the pair are currently trading in the 1.78’s, meaning that for those planning on making a GBP to AUD transfer are looking at attractive levels considering recent trading levels. I would add that the lower end of the trend is 1.60 so hopefully you can see my reasoning as to why the current levels are around the top of the market.

There are hopes that the Pound will climb further, and this week the Brexit Secretary, David Davis said that the UK ‘can live with’ a shorter transitional period which has boosted the Pound’s value along with the likelihood of UK interest rates climbing sooner than many had expected.

Analysts at Lloyd’s Bank have recently upgraded their forecasts for the Pound to Aussie Dollar rate this year. They had previously expected to see the pair trade at 1.72 at the inter-bank level although the changing tones from the Bank of England and the Reserve Bank of Australia has changed their minds, with them upgrading their views on the Pound’s potential.

There isn’t any major economic data coming out of the UK or Australia this week, so I expect the pair to be driven by politics for the remainder of the week.

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.

The Aussie remains in the familiar ranges, what will move GBPAUD this week?

The pound to Australian dollar has been largely range bound in the last few weeks as fail to receive any new news which would trigger movement outside of the current levels. The GBPAUD rate range in the last month has been just 3 cents which whilst important is not a particularly big move for this pair.

In times of changing fortunes on the currency markets we can expect GBPAUD rates to fluctuate perhaps 5-10 cents in a busy period as the market adjusts to new news. There are many different factors which drive changes on the Aussie, including not only Australian data but also attitudes to risk in the currency markets.

As a ‘commodity currency’ the Aussie will rise and fall according to the outlook on the global economy. As a ‘higher yielding’ currency the AUD will often rise as investors park their cash there to benefit from the higher interest rates. This is in part evidenced by the news of late on the US dollar which has been rising, as the US dollar rises we have seen the Aussie weakening. Investors are shifting funds around to take stock of the changing interest rates between the currencies.

The key Australian data is focused around a speech from Governor Bullock tomorrow who is the Assistant Governor of the RBA (Reserve Bank of Australia). This could see the pound to Australian dollar rate volatile although it is unlikely we will learn much new information. The RBA rate statement from last week failed to speak much movement, it didn’t tell us anything particularly new about the potential, or lack of any Australian interest rate changes.

There is some important news from the USA this week which could change attitudes to the Aussie, but all in all we might not see GBPAUD break from the recent ranges. For me, next week is looking a bit more interesting with the latest EU Summit where Brexit will be discussed, plus we have the latest US interest rate decision.

GBPAUD and the Aussie look to remain fairly range bound for now but this could quickly change. Using this quieter time to make plans for future developments is I believe a very smart move. For many clients buying AUD with pounds we are looking to trade GBPAUD above 1.80, for the sellers, many are targeting 1 AUD = 0.6 GBP.

If you have a transfer to make and are interested to secure your currency at the best rates with the most up to date information, please feel free to contact me to discuss further. To discuss further the market and your options please speak to me Jonathan Watson by emailing jmw@currencies.co.uk.

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

 

Aussie Dollar strengthens despite RBA’s negative comments, where to next for the Aussie Dollar (Joseph Wright)

The Aussie Dollar has surprised the markets today after performing well, despite some downbeat comments from the Reserve Bank of Australia.

those of our readers following the Australian Dollar will be aware that the currency has lost a lot of value recently, with some economists predicting that the downward trend could continue.

Although this blog tends to have a Aussie Dollar to Pound narrative quite often, it’s worth noting that AUD has lost 5% against the US Dollar since the end of January which is a substantial drop even for the commodity based currencies.

When compared with the Pound, there appears to be support for the Aussie Dollar which has so far stopped GBP/AUD going above 1.80 since the Brexit vote. On a number of occasions the pair have got close but each time there is a reversal, so it will be interesting to see the Aussie Dollar goes from here.

The Reserve Bank of Australia (RBA) warned that interest rate rises remain some way off. With the US FED Reserve hiking rates and US banks likely to offer a higher rate of return than AUD based ones soon, it’s leading many economists to predict further falls for the Australian Dollar.

Australian GDP has also been softening with the GDP (economic output) level falling below the 0.5% expectation over the past quarter.

If you would like to be notified in the event of a major market movement for the GBP/AUD pair do feel free to register your interest with me.

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.

 

Sterling falls after strong words from the EU, will GBP/AUD continue to fall? (Joseph Wright)

Sterling exchange rates have fallen across the board today, after some strong words from the EU negotiating team regarding Brexit have caused Sterling bulls some cause for concern.

It appears that issues surrounding the Northern Irish border and how the customs union will continue along with whether there will be a hard border between Northern Ireland and the Republic of Ireland.

Regular readers of ours will be aware that it’s Brexit related data that’s causing GBP exchange rates to move the most dramatically at the moment, and today is no different as such as an update from Michel Barnier is impacting the Pounds value to a greater extent than the news of a rate hike from the Bank of England recently.

The Pound to Aussie Dollar rate is now dropping into the mid 1.70’s after testing the late 1.70’s in recent weeks. Tomorrow there is the potential for further price movement as there will be there release of Manufacturing data which will cover expectations moving forward. Then on Friday there will be Services PMI which again will cover sentiment moving forward in what’s a very important sector for the UK.

If you would like to plan around these events do feel free to get in touch with me. Also Bank of England governor Mark Carney and UK Prime Minister Theresa May will be speaking on Friday which may move markets, so again it’s worth being aware of this.

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.

 

Will the Pound to Aussie Dollar rate recover back to pre-Brexit levels anytime soon? (Joseph Wright)

There has been a 1 and a half cent difference between the high and low for GBP/AUD today, as the pair appear to be continuing to decide which direction to move in next.

Sterling has performed in a mixed fashion against the majority of major currency pairs today and I think the economic data released this morning is perhaps one of the reasons for this.

This morning the office for national statistics (ONS) reported that annualised UK Inflation figures for January showed 3%, justifying the Bank of England’s concerns regarding the rising rates of inflation. This was above the expectation of 2.9% and and considerably above the BoE’s 2% inflationary target figure.

The potential for another rate hike from the BoE is now more realistic, and with wage growth now beginning to show signs of an improvement I think there is a chance of it happening this year which is why the pound has been climbing.

GBP/AUD is currently just under 1.80, and if the pair breach this key level I can imagine seeing the rate break through into the 1.80’s even if it’s proving a stubborn barrier up until this point. A move towards 2.00 would be back to pre-Brexit levels, and should AUD continue to weaken I think seeing GBP/AUD closer to this mark sometime throughout 2018 isn’t something to be ruled out.

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.

GBP/AUD remains at 1.77 after RBA opts to hold interest rates (Joseph Wright)

The Reserve Bank of Australia last night chose to keep interest rates unchanged, which was the expected outcome from economists leaving the currency markets unchanged at 1.5%.

This was the first chance the RBA had to make a change this year, and the base rate has remained at 1.5% for around a year and a half now. Many central banks have opted to hike interest rates in recent months, and should this continue it will result in the Australian interest rates being uncompetitive and therefore AUD weakness in my opinion.

Last year AUD benefited from offering one of the highest interest rates in the developed world. Investors are keen to hold funds in a high yielding currency but should AUD lose its competitive edge, it’s likely that money will be taken out of the Aussie Dollar and we’ll see it fall.

Politics also have the potential to move the GBP/AUD pair, especially at the moment as the European Union’s chief Brexit negotiator Michel Barnier is in London to discuss the UK’s plans and proposals for Brexit this week.

Those following the Pounds value should be aware of this and the potential it has to impact GBP exchange rates should any key comments be made, and do feel free to register your interest with me if you wish to be updated in the event of a major rate spike.

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 factors are likely to impact the Pound to Australian Dollar exchange rate? (Joseph Wright)

Despite the Pound to Aussie Dollar rate improving recently in line with the Pounds good performance in general, there are some analysts expecting to see the Aussie Dollar gain in the months to come.

If the Reserve Bank of Australia (RBA) follow in the footsteps of the US and begin raising interest rates like many expect them to, I think we can expect to see the Aussie Dollar strengthen so those hoping for a stronger Aussie Dollar should be aware of this.

In the current market conditions the markets are usually aware of any upcoming rates changes and it’s usual to see the change being priced into the value of the currency in the weeks and months leading up to the actual change.

Those following the GBP to AUD exchange rate should be weary of this as any allusions from the RBA could result in immediate changes in the exchange rate which currently sits around the 1.75 mark.

From the UK’s perspective the Brexit is likely to continue to drive the value of the Pound as markets the outcome of Brexit negotiations. A spokesperson for UK Prime Minister Theresa May recently came out and said that there is yet to be a transitional agreement made despite reports from some sources suggesting there was.

If you wish to be updated in the event of a short term price change for the Pound, do feel free to register your interest with me.

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.

Employment data will be the main focus for Australian Dollar exchange rates this week (Daniel Wright)

In a reasonably quiet week ahead for Australian Dollar news, the main focus for investors and speculators alike this week will be global attitude to risk and Australian unemployment figures. Global attitude to risk can change at any time, especially with the Trump/North Korean situation still ongoing and the unemployment figures are due out on Friday morning in Australia or overnight on Thursday night for those readers from the U.K.

Expectations are for unemployment levels to remain at 5.4% however with a positive improvement in the rise of jobs last month (which was unexpected) do not rule out movement for Australian Dollar exchange rates early on Friday.

Having just spent three weeks in Australia it does appear that views on the Australian economy are mixed at present. Some people I spoke to were really confident about how things were going and others were less positive, citing that they felt that certain areas were at the top of a housing bubble that was due to burst at any time.

My opinion from being on the ground over there, particularly in Sydney (where this bubble appears to have blown up the most) I do not see it crashing down anytime soon. There is a huge amount of building work going on and a great increase in new retail developments from what I can see, along with an influx of Chinese money I find it hard to see the house prices dropping off unless further restrictions are put in place to try and halt it artificially.

For me this suggests that the Australian Dollar should remain fairly strong in the early part of 2018, I do not expect large gains made by the Australian Dollar but I would be surprised not to see the currency hold its ground against most majors, as long as the banana skin of major global uncertainty comes along to change that.

If you have an Australian Dollar exchange to make in the coming days, weeks or months and you would like assistance not only on the timing of your transfer but also with achieving the very best rate of exchange too then I can help you personally.

Feel free to get in touch with me (Daniel Wright) by emailing me on djw@currencies.co.uk and I will be more than happy to get back to you. Having now worked at the same foreign exchange brokerage for over a decade I am well placed to assist you and will be more than happy to help.