Tag Archives: sterling

The beginning of a rebound for GBPAUD exchange rates? (Joseph Wright)

GBPAUD exchange rates have remained range bound throughout this week, and they’ve been trading within this range (between 1.83 to 1.86) since April the 13th.

There would appear to be some support for Sterling around the 1.83/1.84 mark, and I think that those waiting for the right time to sell their Aussie Dollars should pay close attention to that particular level, as it may present the best opportunity to make that conversion.

I’m of this opinion for a number of reasons, firstly as we’ve previously covered here on the blog, Reserve Bank of Australia (RBA) Governor Glenn Stevens has previously highlighted the downsides to an overvalued currency to a recovering economy, and I think that there is a chance the RBA could take action in order to weaken AUD some time in future. Additionally the fears surrounding Britain’s political future moving forward are beginning to subside, at least that’s what the currency markets are suggesting as GBP has recovered a lot of lost ground on many of the major currency pairs this week.

When we look at the chart for GBPAUD this year the weakening of the Pound looks like it’s begun to slow down since the middle of March, this would suggest Sterling is finding some strength around these current levels, and personally I becoming a bit more bullish with regards to GBP moving forward and I wouldn’t be surprised to see GBPAUD levels closer to 1.90 than 1.80 around the beginning of next month.

Sterling exchange rates have been dragged downwards this year mostly due to the upcoming EU Referendum on the 23rd of June, and as both the UK Government puts in overtime to sway the public into voting to remain in the EU, and the most recent polls are suggesting that the ‘remain’ camp is leading, Sterling exchange rates are beginning to show strength at a time when many haven’t expected it.

There’s no financial data to be released tomorrow that applies specifically to GBP or AUD, so I expect sentiment to continue to drive the GBPAUD exchange rate for the rest of the week. If you have an upcoming currency requirement involving GBP, AUD or both, it’s worth your time either calling me directly on 01494 725353 and asking for Joseph Wright, or alternatively you can email me directly on jxw@currencies.co.uk for my forecast, and taking advantage of award winning exchange rates from a regulated UK based currency brokerage.  

 

Australian Dollar continues to strengthen against Sterling even after Chinese GDP figures (Tom Holian)

Sterling vs Australian Dollar exchange rates have continued to fall during the course of the week even after the Chinese GDP figures showed a fall to 6.7%.

As China is Australia’s largest trading partner any slowdown in the world’s second largest economy often tends to weaken the Australian Dollar however the data has caused little movement on the GBPAUD rate.

This highlights the problems that Sterling is facing across the board and with just over 2 months to go before the UK holds the EU referendum on whether to stay or leave the European Union this is causing a huge loss in confidence for Sterling exchange rates.

The Bank of England has also recently warned that the EU vote is likely to harm future growth and BoE governor Mark Carney has stated that the possibility of Britain leaving the EU was the ‘biggest domestic risk to financial stability.’

On Tuesday the Reserve Bank of Australia meet to announce their latest set of minutes and any hints of a potential rate cut could see the AUD weaken but for the time being whilst the UK economy is dominated by the uncertainty of a potential Brexit this could see Sterling slip even further against the Australian Dollar providing some very good opportunities to sell AUD into Sterling.

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

 

 

Will GBPAUD keep rising for now?

Sterling to Australian dollar exchange rates have risen from the recent lows as sterling finally finds some bounce and investors are reminded that it is not all bad news for the UK. Tata Steel has possibly been saved and David Cameron doesn’t look like he is going to be resigning anytime soon. The prospect of further news on the currency markets moving sterling exchange rates much higher does seem limited since any gains for the pound will be hampered by the political uncertainty up ahead. I think therefore the best strategy for anyone buying Australian dollars is to buy on the spikes in your favour as a sudden sharp return to favour seems in my opinion unlikely. The Australian dollar is being supported by improvements in the Chinese economy and the worst fears not being realised, there has been a real boom in commodity prices and the worst fears over a Chinese economic crisis have so far failed to materialise.

The big news for the Australian dollar this week is the Unemployment news being released this Thursday and then Chinese GDP released on Friday morning. All in all the expectations are for this currency pairing to remain between 1.80 and 1.90, I think if you are looking to buy Australian dollars a rate at the higher end of 1.90 is about as much as you can expect. I would personally expect rates next month of between 1.70 and 1.80 as the full fears of the Brexit become very apparent!

If you have an Australian dollar transaction to consider making plans in advance is sensible to avoid the risk of further unexpected moves making your transaction more expensive. Please email the author Jonathan Watson on jmw@currencies.co.uk to learn more.

GBPAUD Gains After Poor Australian Construction Data

Sterling gained on the Aussie Dollar by almost 1% today, offering Sterling sellers the first opportunity in a while to purchase Aussie Dollar’s on a day when the rate moved in their favor.

Personally I haven’t found today’s movement surprising, as trend lines never move in straight lines and yesterday the Pound hit a twelve month low vs the Aussie Dollar, and therefore it’s not unusual to see traders bargain hunting as soon as a currency pair fall through a previous support level.

Market speculators looking to make a quick buck wasn’t the only factor working against AUD today, earlier Australian Construction PMI disappointed, with the figure suggesting that the construction sector in Australia is actually contracting and this was met negatively by the market.

I still believe that GBPAUD is within a long term downtrend, and could fall further presenting Aussie sellers with further gains if they decide to hold on a short while longer. But anyone interested in the pair should pay very close attention to interest rate decisions made by both the RBA and the US Fed, as the Australian Dollar is highly sensitive to suggestions of policy changes, let alone actual decisions.

If anyone with an upcoming currency requirement involving both GBP and AUD would like to discuss the effects of interest rate decisions on the pair, I’ll be happy to share both my own opinion and the general feel within the marketplace with them, just email me (Joseph Wright) directly on jxw@currencies.co.uk and I’ll be happy to discuss my forecast with you, and the ease at which we facilitate currency conversions here in our specialist foreign exchange brokerage.

Australian Dollar continues to strengthen vs Sterling (Tom Holian)

GBPAUD exchange  rates have continued to move in a negative direction as the UK has experienced a very difficult week both politically and with the economy.

The release of the information from Panama has caused political instability for the UK with many companies using bank accounts over there to keep money away from the UK in order to avoid paying tax.

With the government also paying £9m for ‘Remain’ leaflets to send to British homes his credibility has been knocked and this has had a negative impact on the Pound.

The next big move for Sterling vs Australian Dollar exchange rates will come at some point today when the Chinese release data concerning their foreign exchange reserves.

China has taken a different approach to the western economies by trying to spend itself out of trouble during last year and it appears to have been working according to a recent survey.

As many as 1400 companies surveyed were much more positive and this has been reflected with recent Australian Dollar strength vs Sterling.

If this data release concerning Chinese foreign exchange reserves is positive I think we could see further losses for Sterling vs the Australian Dollar creating even better opportunities to sell AUD into Sterling.

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

 

 

Aussie Dollar Rises After A Quiet Day’s Trading

The Australian Dollar rose slightly yesterday, as it usually does during times of low volume when markets are impacted by holidays.

The boost in AUD’s value was mainly due to weakness in the US Dollar as the Atlanta Fed published it’s ‘GDP Now’ figures which disappointed after the figure was cut from 1.4% to 0.6%.

As news coming out of the region is thin at present I’m expecting today’s speech by Janet Yellen, the chairlady of the Fed, at 4.20pm GMT time to provide some direction for the Australian Dollar against the US Dollar and I think AUD could benefit further should Janet Yellen adopt a dovish tone. There have been mixed messages from the Fed as of late so I’m hoping that the Fed Chairlady is more straightforward with her opinion on the state of the US economy moving forward.

With regards to the Pound I think ‘Brexit’ fears will continue to weigh on its value, and unless oil prices take another significant nosedive I’m not expecting AUD to lose ground on GBP as the pair are mostly driven by sentiment at the moment with Sterling coming off worse.

Those looking to sell Australian Dollars in order to purchase British Pounds may wish to take advantage of current levels, as since the beginning of the year the Aussie Dollar has strengthened considerably. For how long the pair trade at around current levels of 1.88 – 1.92 I think depends on the outcome of the UK’s upcoming EU referendum, and I’m expecting GBP to spike upwards should the British public opt to stay within the EU.

If you are planning a currency conversion involving GBP or AUD it may well be 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.

 

Sterling Australian Dollar rates under huge pressure in the run up to the EU referendum (Tom Holian)

We have already seen big falls for GBPAUD rates during the last few months with exchange rates over 30 cents lower than they were at their highest point back in December.

Sterling has had an extremely difficult period against all major currencies and in particular against the Australian Dollar.

Whilst the Eurozone has cut interest rates to 0%, printed another EUR20bn per month and the UK keeping interest rates on hold for the foreseeable future the Australian Dollar with a much higher yield has been the real benefactor as of late.

The EU referendum is just less than 3 months away now and this has caused investor confidence in the Pound to drop as the uncertainty of whether the UK will look at leaving the European Union has meant that overseas investment in the Pound has been significantly reduced.

The ‘Leave’ campaign for the UK has also gathered momentum during the last month.

Although the Chinese economy has also started to falter during this period this would typically weaken the Australian Dollar as China is their biggest trading partner.

However, the plight of China also goes to highlight the global slowdown and reinforces the problems that the UK is facing.

Chancellor George Osborne recently downgraded the UK’s economic growth forecast for 2016 from 2.4% to 2% and with Retail Sales much lower than expected last week Sterling has really struggled as of late.

On Thursday UK GDP data is published and if we see a revision lower we could see GBPAUD rates fall further towards the end of next week.

Therefore, if you need to buy Australian Dollars during the next few weeks you may wish to buy a forward contract which allows you to fix an exchange rate for a future date.

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

 

 

 

Sterling Australian Dollar Rates continue to fall (Tom Holian)

The Australian Dollar is now at its best level against Sterling for almost a year following the terrible atrocities in Brussels earlier this week.

This caused global investors to sell both the Euro and the Pound in favour of a higher yielding currency as well as the safe haven of the Australian Dollar.

With Australian interest rates much higher than in both the Eurozone and the UK then I think whilst the tensions continue we could see further Australian Dollar strength vs the Pound.

The fears of a Brexit are continuing to gather pace in the UK with just less than 3 months to go before the UK referendum takes place on 23rd June.

Personally I don’t think the UK will vote to leave the European Union but over the next few months whilst the political landscape remains uncertain this could cause Sterling to fall further than its current levels against the Australian Dollar. Indeed, this is causing foreign investment to decrease in the UK.

Next Thursday is likely to be the biggest day of next week for volatility when the UK releases GDP figures for the fourth quarter of 2015.

The figures will be revised and depending upon which way could cause a big movement for Sterling vs Australian Dollar exchange rates.

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

 

 

Are we likely to see 1.80 or 1.90 on GBPAUD exchange rates? (Dayle Littlejohn)

In recent weeks GBPAUD has been plummeted due to the upcoming UK referendum in regards to remaining or leaving the European Union. I am in no doubt the Pound will continue to suffer leading up until June 23rd, therefore there is a strong possibility GBPAUD could reach 1.80.

However Prime Minister Malcolm Tunbull has threatened an election could be on the horizon as early as July if his labour reforms are not approved. Elections heavily weigh down on the countries economy therefore if an election date is announced I expect GBPAUD to break back through 1.90.

If you are buying or selling Australian Dollars in the upcoming weeks or months, uncontrollable events are going to have either a positive or negative impact on your exchange rate. Therefore I recommend getting it touch and we will then keep you updated with all the latest news and events which will help you save money.

The currency company I work for enables me to achieve clients up to 5% better exchange rates than the high street banks and other brokerages. I specialise in property purchases and sales. Therefore if you are buying or selling a property and want to save money by achieving the best possible exchange rates but also want help in timing your transfer, get in touch by emailing me on drl@currencies.co.uk.

The more information you provide me, the more information I can provide you, below is a list of what I require:

Your name

Brief description of requirement

Amount in Euros

Your budget

Timescales

Telephone number and convenient time to call

Brussels Attack Causes Huge Australian Dollar Strength vs Sterling (Tom Holian)

The terrible attacks that took place this morning Brussels have caused a huge flight to safety on the global currency markets with the Australian Dollar strengthening by as much as 4 cents from the high to the low vs Sterling.

UK inflation data has also missed its target of 0.3% and coming out at just 0.2% has caused confidence in Sterling to fall as it highlights the problems that the UK is facing in terms of growth.

Indeed, it was only last week when Chancellor George Osborne announced that the UK has cut its 2016 growth forecast from 2.4% to 2% which caused problems for the Pound.

However, the over-riding reason for the strengthening of the Australian Dollar is that they are far removed from events in Europe and global investors have sold both the Euro & Sterling in favour of the Australian Dollar during today’s trading session.

RBA governor Glenn Stevens has claimed that Australia is better placed than most other countries to fend off a global economic problem owing to the fact that their interest rates are currently higher than most others.

This allows them to cut interest rates if necessary  rather than use QE which arguably has failed to work in the Eurozone or in the UK.

I think this currency movement has been over-exaggerated today and I expect to see some Sterling strength during early morning.

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 

Alternatively call me on 01494-787478 and ask to be put through to Tom Holian