Tag Archives: sterling
This year we have seen the Aussie as one of the biggest losers on the currency markets. Many had been expecting this for sometime claiming the Aussie was ridiculously overvalued. Where next will rates go on the Australian dollar?
Making currency prediction is an extremely difficult thing and no one can tell you exactly what will happen. What we can expect in the future however can be determined from assessing the current trend. Reading between the lines it appears to me that the Australian economy is on the back foot and that in the future the RBA (Reserve Bank of Australia) will seek to weaken the Australian currency as they have recently.
It is worth remembering the Australian currency was historically much, much weaker and current selling rates remain very favourable.
If you would like more information on the future direction of rates and what to be considering if moving funds, please contact me Jonathan directly on firstname.lastname@example.org
GBP/AUD exchange rates through 1.81 following poor GDP data in Australia, will the trend continue? (Mike Vaughan)
Sterling pushed through the 1.81 barrier this morning, bringing GBP/AUD to its highest levels since February 2010 – but will this trend continue? Overnight Australian GDP data was released showing a disappointing result of 0.6% down from the expected 0.6%. This has brought the shift in Sterling to just shy of 8% against the Aussie since the end of October – a pretty good return in anyone’s eyes. For me there is a chance that this run will continue, but I would also urge AUD buyers to consider these gains and view the opportunities currently available.
Looking at the data for the rest of the week watch out for employment figures from the US at 12:15 today and the important non-farm payroll figures at 13:30 on Friday. Any improvement and I would expect further losses for the AUD as this shifts the likelihood of the FED tapering QE a little bit closer, a situation that is likely to bad news for AUD exchange rates. Also watch out for the Bank of England interest rate decision tomorrow at 12.00, expect to see no change which shouldn’t affect rates significantly but still one to keep an eye on.
As with making any financial decision it is always best to get as much information about the product and the service on offer. As a specialist execution only currency broker we pride ourselves on our
efficient, client friendly service and most importantly our price. When using a broker rates can be significantly better than high street banks and other financial institutions. To find out more about the service please contact 01494 787478 or email me with a brief overview of your particular requirement and I will happily provide further insight into current market conditions and the contract that may work best for you. Email Mike on email@example.com
The Australian Dollar has had the worst month in a few months against the Pound and has hit the lowest level against Sterling for the whole of 2013. Investors are nervous about what is happening down under as the RBA has made comments that monetary intervention including artificially weakening the currency in order to make exports more competitive.
As China’s growth starts to slow this means less resources are in demand and the economy in Australia feels the effects. As China is Australia’s largest trading partner any negativity could have a serious impact on Australian Dollar exchange rates. RBA Governor Glenn Stevens has mentioned the possibility of intervening last week which has weighed on the strength of the Aussie Dollar.
During the credit crunch era of 2007 and 2008 the RBA has admitted that they intervened in the foreign exchange market so the precedent has already been set from before. The previous movement was an attempt to stabilise the disorder that was taking place at the time. During 2008 the Aussie Dollar lost as much as 40% against the US Dollar.
I’m not claiming that we’ll see such a movement but there is room for a quick changing in the exchange rates if the RBA does attempt to influence things so if you’re concerned about making a currency transfer to buy or sell Australian Dollars then get in touch for a free quote Tom Holian firstname.lastname@example.org
The Australian Dollar has lost ground against most major currencies in trading today following comments from the Governor of the RBA (Reserve Bank of Australia) mentioning that he would be keeping an open mind on intervention to weaken the Australian Dollar in the near future.
This confirms the constant opinion that the RBA feel that a strong Australian Dollar is damaging the Australian economy and that there is certainly further scope for another interest rate cut in Australia in the near future.
An interest rate cut is generally seen as negative for the currency concerned and a hike in rates positive so a cut in rates again may further weaken the Australian Dollar and even the pure speculation of this and other possible measures coming into play may weaken the Australian Dollar further against the Pound and could push Sterling – Australian Dollar rates closer to 1.80 in the lead up to Christmas.
Of course anything can happen as we all know though so if you do have a pending currency transfer to carry out and you want to get the very best rate of exchange for it along with having a proactive, knowledgeable and vigilant currency broker on your side then please do feel free to contact me directly and I will be happy to help you.
You can email me directly on email@example.com with a description of what you are looking to do and a contact number and I will be more than happy to get in touch.
Pound pushes on against the Australian Dollar as Mark Carney indicates the UK’s recovery is taking hold (Mike Vaughan)
The current topsy turvy trend for GBP/AUD is continuing. At the beginning of October the market was looking set for a push to 1.75 and beyond reaching a high of 1.74, however within a three week period levels had fallen back to 1.67, a fall of over 4%.
Today the pound has pushed on following positive unemployment data from the UK and a positive stance from Mark Carney head of the Bank of England. Following the release of todays Bank of England Inflation report Carney indicated that the UK recovery was taking hold. He indicated growth for this year is forecast to be 1.6%, up from 1.4% previously thought, and for next year, annual growth is expected to be 2.8%, rather than the 2.5% it predicted in August.
The report said: “In the United Kingdom, recovery has finally taken hold. The economy is growing robustly as lifting uncertainty and thawing credit conditions start to unlock pent-up demand.”
We are currently seeing a recovery from the pounds point of view with levels recovering from 1.677 last week to over 1.72 at the time of writing. For me I still feel there is more value for Aussie buyers and would look again for the pound to push on from current levels. However October’s trends are a timely reminder of how quickly the market can shift and how opportunities can be missed.
Should you have an upcoming money exchange to arrange and you would like assistance getting the best deal then contact the office on 01494 787478. Alternatively email me with a brief overview of your particular requirement and I will contact you to discuss how we can be of assistance and how the currency service we provide works. Email Mike at firstname.lastname@example.org
Sterling’s topsy turvy run against the Australian Dollar has continued with levels pushing through the 1.71 level for the first time in a month and bringing the pounds gains to over four cents in a two week period. Its big shift was following the non-farm payroll figures which improved pushing the date the FED may consider tapering QE closer, something in the long run that is likely to hamper the Aussie in my view.
Looking shorter term and this week is set to be very busy, particularly from the pounds point of view. Starting tomorrow we have the UK inflation figures at 09:30. Importantly will then be Wednesday’s unemployment figures, again at 09:30, followed by the Bank of England’s quarterly inflation report. This report and unemployment will give further hints as to the Bank’s future stance on interest rates and can affect the market accordingly.
Looking at data in Australia – watch out for tomorrows Westpac’s consumer confidence figures.
For me I feel the pound is set for a strong week against the AUD and could offer some better buying opportunities. To discuss the currency service we provide and the multiple contracts we can offer to help maximise your exchange then please contact the office on 01494 787478 or email Mike at email@example.com
Busy day for the pound with the Bank of England interest rate decision as GBP/AUD pushes back towards 1.70 (Mike Vaughan)
Today is likely to be a busy day for sterling exchange rates with the release of the Bank of England’s latest interest rate decision. It is widely expected that rates will remain on hold at 0.5% and so to will the banks stance on Quantitative Easing. As a result I wouldn’t expect too much movement for the pound, unless of course the bank springs a surprise.
Overnight the GBP/AUD rate has pushed towards 1.70. Unemployment figures remained at 5.7% as expected but comments from Reserve Bank of Australia (RBA) Governor Glenn Stevens stating that the dollar is “uncomfortably high” weakened the Aussie and suggests the RBA may consider intervening to make sure they get the outcome they want. This will make tomorrows RBA monetary policy statement important for anyone looking at AUD as any hint at future interest rate cuts and we could see levels push though the 1.70 barrier and beyond. For me I personally feel more value will be seen for AUD buyers but
anyone selling should consider their current position.
Should you have a money exchange to arrange and you would like to discuss the current trends and the currency service we provide then please contact the office on 01494 787478 and I will happily provide my thoughts and run through the various contracts we can offer. Alternatively please email me with a brief overview of your currency requirement on firstname.lastname@example.org