Tag Archives: sterling

Further losses for Sterling vs the Australian Dollar expected (Tom Holian)

The Pound has made some limited gains vs the Australian Dollar recently but ultimately is struggling to break much higher.

There are a number of different reasons as to why the Australian Dollar is performing so well against the Pound at the moment and I think we’ll see GBPAUD rates fall below 1.60 in the near future.

The Reserve Bank of Australia has made it clear that there will be no interest rate change for the time being and as interest rates are so high compared to any other leading economy we are continuing to see money invested in Australia.

Commodities have also been improving other the last year with the value of iron ore rising by over 50% in that same time. With iron ore such a huge part of the economy this has also kept the AUD strong against Sterling.

The Pound is also struggling against most major currencies and with next month due to see the triggering of Article 50 we could be in for further uncertainty ahead and a loss of confidence for Sterling.

Indeed, it is not yet clear whether the UK will opt for a hard or a soft Brexit and the lack of clarity is causing problems for the Pound.

The UK economy has actually been performing relatively well but recently we have seen two sets of data that should cause real concern. UK Average Earnings have started to fall and with inflation on the rise this means the UK consumer will ultimately have less money to spend and this was clearly demonstrated with the release of UK retail sales for January which saw the lowest level in three years.

On Wednesday we see the release of Chinese manufacturing data and Australia’s commodity index for February and if both come out well I think we’ll see the Pound fall against the Australian Dollar.

If you have a currency requirement coming up and would like more information or for a free quote when buying or selling Australian Dollars then do not hesitate to contact me directly and I look forward to hearing from you.

Having worked for one of the UK’s leading currency brokers since 2003 I am confident of offering you competitive rates as well as help with the timing of your transfer.

Tom Holian teh@currencies.co.uk

 

GBP/AUD declines further, will the pair fall below 1.60? (Joseph Wright)

Sterling is dropping in value once again against the Aussie Dollar, which in contrast to how the currency is performing against other major currencies such as the Euro or the US Dollar.

After some less than impressive US economic data releases so far this week, demand for the high yielding Aussie Dollar is on the rise as the likelihood of the US Fed Reserve Bank raising interest rates 3 times this year is likely to weaken if economic data out of the US doesn’t justify it.

Planning a currency exchange involving the Aussie Dollar can be difficult as it’s performance depends on a number of outside factors. There are fears the Aussie could weaken as the year goes on if the US is to raise interest rates a number of times this year as demand for the US Dollar will then increase, and investors would likely move deposits from the likes of the Aussie Dollar into the US Dollar.

The Australian economy is also reliant on key trading partners such as China so a slowdown in the Chinese economy could also weigh on AUD’s value but as it stands the currency is doing particularly well.

With the Brexit process to begin next month I think there’s a chance the Pound could come under additional pressure, and we may see the mid -market level between GBP/AUD fall below 1.60.

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.

Aussie Dollar remains strong despite positive news for the Pound, where to next for the GBP/AUD pair? (Joseph Wright)

Despite a boost to Sterling exchange rates yesterday afternoon the Aussie Dollar has continued to remain strong, bucking the trend which is a good indicator of Aussie Dollar strength right now.

The Pound rallied against most currencies yesterday after the Bank of England’s Kristin Forbes suggested that an interest rate hike in the UK should still be considered due to the reasonable levels of economic growth and the large amounts of ‘easy money’ available to the markets.

Additionally, there were comments from David Jones, a Brexit minister in the House of Commons that helped give the Pound a further boost yesterday afternoon. Jones announced that the House of Commons will be asked to approve the final Brexit deal before it’s put forward and this move leans towards a ‘softer Brexit’ which is why the pound gained value.

The reason for the Aussie Dollars resistance to a surging Pound is the hawkish Reserve Bank of Australia’s comments this week, whilst Chinese economic data has also impressed which is a good indicator for the Aussie Dollar strength in future due to the economies being closely linked.

In the current market conditions it can be comments made by key figures that move markets, and if you wish to be kept up to date with short term market movements 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.

Iron Ore keeps the Australian Dollar strong against the Pound but for how long? (Tom Holian)

Iron ore has continued to go up for the fourth month in a row which is the longest period of increase since 2012 as demand from China continues to support the commodity market and therefore the Australian Dollar vs Sterling.

The price for the commodity is now the highest in two years but demand is cyclical and to me it is only a matter of time before Chinese demand starts to wane but the question is how long will we have to wait?

With Trump now in his second week as President of the United States he has upset many global leaders with some of his executive orders and with growth slowing in the US I think this will affect what is happening in China and therefore the Australian Dollar in the longer term.

In the meantime however whilst commodity prices remain resilient this could keep the Australian Dollar relatively strong vs Sterling for the time being.

The Pound is in my opinion still heavily undervalued against the Australian Dollar but whilst the uncertainty surrounding the topic of Brexit and Article 50 carries on then it will be difficult to see the Pound make any real significant gains even though UK economic data is going well at the moment.

Next on the agenda globally will be the US Federal interest rate decision due on Wednesday evening and typically whatever happens in the US has a knock on effect on the value of the Australian Dollar.

If you would like to take advantage of these current levels to exchange Australian Dollars and would like to save money on exchange rates compared to using your own bank then contact me directly for further information and a free quote and I look forward to hearing from you.

Having worked in the foreign exchange markets since 2003 I am confident that I can also help you with the timing of your transfer and make the whole process simple and stress free.

Tom Holian teh@currencies.co.uk

 

 

Sterling Australian Dollar exchange rates due for a volatile day today? Supreme Court decision due out today! (Daniel Wright)

The long awaited Supreme Court hearing decision in the U.K is due out later this morning, which many expect  to cause a fair amount of market volatility, not only for the Pound but for global markets as a whole.

Since this all started in December, the markets have been watching and waiting for any hint as to which way that the decision may go, as it will have a great impact on the Pound and where it heads next due to the influence it may have on a ‘hard’ or ‘soft’ brexit.

Should the Supreme Court overturn the high court decision and say that Theresa May and the Government are good to proceed with moving forward on article 50 (starting the process of brexit officially) then there is the chance that Sterling may drop off a little, but also to show another argument it may lead to Sterling strength as we will finally have a little certainty as to where the U.K heads with all of this.

The expectation is for the decision to confirm that they are upholding the High Courts initial decision and that May will have to put the decision through Parliament. If this is the case then more uncertainty may give the Pound a little drop off but what we hear afterwards could push it back up as I would be surprised if we do not hear a lot of the MP’s asking for a softer approach to brexit which may leave access to the single market.

All in all this could be a very busy day for Sterling/Australian Dollar exchange rates so you need to make sure you are watching the markets at all times, or that you take advantage of limit orders. If your current broker or bank has not made you aware of this handy tool then this is something that we offer. A limit order is where you can set a particular rate trigger in the market that you would like to achieve,  and should it become available any time 24 hours a day 7 days a week then your rate will be bought out automatically for you. There is no cost to place this order and it can be cancelled or amended at anytime with a quick phone call to us.

If this seems of interest or you would like to make an enquiry about our award winning service and exchange rates anyway then it will be well worth you contact me personally. You can email me (Daniel Wright) on djw@currencies.co.uk with a description of your needs and I will call you personally to discuss the options available to you and to explain how it all works.

What to expect this week for GBPAUD exchange rates (Dayle Littlejohn)

With limited Australian economic data last week and UK  data exceeding expectation you would have thought the pound would have continued its good run against the Australian dollar. However this was not the case as GBPAUD started the week at 1.7175 and is now fluctuating in the 1.66s.

The reason for the decline is the looming Supreme Court ruling. The Supreme Court judges are back to work on the 11th January from their Christmas festivities and they should announce whether UK Prime Minister needs the approval of Parliament before triggering Article 50.

This announcement links directly to either a ‘Hard’ or ‘Soft’ Brexit. If Mrs May has to seek Parliament approval then a softer Brexit becomes more likely and therefore the pound could begin to start making gains against the Australian dollar. Where as if she overturns the High Court decision and she can invoke Article 50 by March then further losses for the pound vs the Australian dollar are on the horizon.

Personally I wouldn’t be surprised to see the judges stick together and therefore a softer Brexit becomes more likely. However 2016 was the year of surprises, therefore getting in touch early and being in the position ready to convert currency is the way forward.

If you are buying or selling Australian dollar in the upcoming weeks, months or years feel free to email me with the reason for your conversion (company invoice, buying a property) and the timescales you are working to and I will email you with my forecast and the process of using our company drl@currencies.co.uk.

** If you are already using a brokerage and would like to know if you are receiving the best rates possible email me with the exact figures and I will reply with our live price. This will take you minutes and in the past I have saved clients thousands! **

 

What will be the big news on GBPAUD exchange rates?

GBPAUD exchange rates have improved as the pound finds favour on the back of an improved outlook for sterling exchange rates and the UK economy. Most analysts now expect the pound to be stronger in the coming weeks and months as investors look to invest their money in a much more stable and potentially profitable currency and country. Most suggestions indicate the UK will no longer be engaging in a hard Brexit which would see the UK sever all ties with the EU including access to the single market. This has helped the pound rise but is it guaranteed?

If you have any currency requirements to buy Australian dollars then you might find it could become more expensive in the future if the Supreme Court decision throws out the government’s case that they will be able to enact Article 50 under Royal Prerogative powers. If the government is allowed to act without parliamentary approval the pound could end up much lower. If the case is upheld then the pound could rise higher but I do feel much of the good news is already priced in.

GBPAUD rates have fallen dramatically but just lately we have had an excellent improvement of almost ten cents presenting some of the best levels to buy the Australian currency in almost 2 months. If you are looking to make any GBPAUD currency transactions in the coming weeks and months then please speak to me Jonathan about the latest news and trends to be kept up to date. For more information please email me Jonathan on jmw@currencies.co.uk

 

Sterling vs the Australian Dollar could hit 1.70 tonight if the US Federal Reserve increase interest rates (Tom Holian)

Rates to buy Australian Dollars have been flirting either side of 1.70 recently in anticipation of the US Federal Reserve raising interest rates at tonight’s meeting.

Typically when the US raises interest rates this results in US Dollar strength and weakens riskier commodity based currencies as global investors plough into the US Dollar.

With the chances of an interest rate hike approximately 95% it appears as though this is a foregone conclusion but as the Fed have been rather cautious during 2016 as far as raising interest rates I think when they finally confirm the action tonight then this could see GBPAUD rates break through 1.70.

The Australian economy has been wobbling recently and showing signs of a slowdown with GDP hitting its lowest level since 2011 last week. Clearly the issues surrounding a ‘soft’ or a ‘hard’ Brexit have been weighing heavily on Sterling vs Australian Dollar exchange rates and I think tonight’s decision could be the catalyst for Sterling strength.

Australian unemployment data is due out overnight and with GDP having fallen recently I would not be surprised to see this data coming out worse than the estimate of 5.6%.

Tomorrow afternoon the Bank of England will announce their latest interest rate decision and although I don’t expect any change in policy any positive comments by governor Mark Carney may see Sterling go in an upwards direction.

Clients looking to sell Australian Dollars to buy Sterling in the future may wish to consider buying a forward contract which allows you to fix an exchange rate for a future date.

Having worked in the foreign exchange industry since 2003 I am confident of being able to offer you bank beating exchange rates as well as helping you with the timing of your transfer of currency.

If you have a currency transfer to make and would like to save money when buying or selling Australian Dollars then feel free to contact me directly for a free quote and I look forward to hearing from you.

Tom Holian teh@currencies.co.uk

 

 

Will the Australian Dollar continue to lose value as we enter the new year? (Joseph Wright)

The Australian Dollar dropped off early yesterday morning after some worse than expected GDP figures were released.

Whilst analysts were expecting to see a quarterly growth figure of 0.3% the figure actually came out at -0.5% which demonstrates that the Aussie economy has been contracting in recent months.

The value of the Australian Dollar has been weakening over the past month or so with the Pound gaining over 10 cents in just the past month.

I’m expecting to see the Aussie dollar continue to decline should economic data continue to disappoint, but whilst I’m expecting further Aussie weakness I do think those planning a currency conversion involving the Pound should be aware that the currency could be fragile at current levels, after gaining so much value in such a short period of time.

Due to the volatility between the GBP and AUD currency pair it can be a wise decision to plan around important news releases. We offer limit orders which can allow our clients to achieve their target prices by setting up automated orders. If you wish to discuss this system in further detail do feel free to get in touch.

There are some important inflation figures out early tomorrow morning which could move markets if the figure released deviates from its expectation of 2.2%. The figure comes out at 8.30am so feel free to get in touch if you wish to plan around this.

If you are planning to make a currency exchange involving the Pound and another foreign currency, it’s 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 falls against the Australian Dollar owing to Supreme Court (Tom Holian)

Sterling vs the Australian Dollar has experienced a difficult last few days as the Supreme Court continues to weigh heavily on Sterling exchange rates against all major currencies including the Australian Dollar.

Both UK industrial and manufacturing data showed a decline this month compared to the expectation and with the NIESR GDP figures not showing any improvement on the estimate this has caused problems for the Pound.

Both Lord Pannick and Dominic Chambers argued that the Brexit negotiations will only be allowed to begin once parliamentary approval has been granted. They have argued that if the government does go ahead this will be ‘a violation of the doctrine of parliamentary sovereignty.’

It is clear that the GBPAUD exchange rates are being heavily influenced by what is happening politically in the UK at the moment as down under Australia announced its first fall in GDP since 2011.

The RBA recently kept interest rates on hold at 1.5% which is the lowest it has ever been and the central bank will wait to see what will happen to the economy since its rate cuts back in May and August.

With all the uncertainty surrounding the foreign exchange market caused by the Supreme Court we are likely to see this volatility for GBPAUD rates continue for the foreseeable future.

Having worked in the currency markets since 2003 I am confident that not only can I offer you better exchange rates than by using your bank but also help you with the timing of your transfer of funds. 

If you have a currency requirement and would like to save money when buying currency then contact me directly for a free quote and I look forward to hearing from you. Tom Holian teh@currencies.co.uk