Tag Archives: sterling

GBP/AUD exchange rate hovering at pivotal point of 1.60 – Where will rates head next? (Daniel Wright)

GBP/AUD exchange rates have been loitering around the 1.60 mark for a number of days now and it appears that neither currency has the power to push through the current levels of resistance and make a break either way.

With Brexit and the triggering of article 50 clearly hanging over the head of the Pound the Australian Dollar has been on a very good run of form, seeing a huge boost last Wednesday when the Federal Reserve over in the U.S hiked interest rates but only gave the nod to a further two interest rate hikes this year as opposed to the expectation of seeing a further three.

Interest rate hikes in the U.S are generally seen as negative for the Australian Dollar as it makes the USD more attractive to investors. With the Australian Dollar and U.S Dollar a well known pairing that is used in carry trading, should either have news that makes it more attractive the other can suffer and you tend to see a large flow of money from one to the other very rapidly.

For those who are not aware, carry trading is a process where an investor borrows money in a currency with a very low interest rate (e.g USD) and shifts it to one with a much larger one (e.g AUD), making a difference on the two. When Australian economic data is poor or the U.S has some good news, you tend to see what is known as the ‘unwinding’ of carry trades, leading to the Australian Dollar weakening and the U.S Dollar gaining strength due to supply and demand.

Personally, I feel that the 1.60 rate will not be hanging around much longer and I would not be surprised to see a rise for the Pound, although be wary of Sterling getting the jitters in the next week or so as we close in on article 50 being triggered on 29th March, this is the official start of the process of the U.K leaving the EU.

For anyone with a large currency exchange to make, either involving buying or selling Australian Dollars it is imperative that you have a proactive and knowledgeable currency broker on your side throughout these turbulent times.

If you would like my assistance then feel free to contact me (Daniel Wright) the creator of this site and I will be more than happy to get in touch to discuss the various options available to you in simple terms. You can email me on djw@currencies.co.uk and I will be more than happy to contact you personally.

Will the Pound to Aussie Dollar rate fall below 1.60? (Joseph Wright)

A quick look at a GBP/AUD chart over the past 6 months will make it clear that the 1.60 level has acted as a key psychological level for some time now.

Since November of last year the GBP/AUD pair have bounced off of 1.60 around 4 times, and even in October of last year when the Pound came under huge pressure the rate only dipped into the 1.59’s for a short while before recovering back to levels above the key 1.60 mark.

Personally I think that a number of factors could reverse the direction of GBP/AUD, and I think 1.60 could remain a support level for the Pound with the pair likely to approach 1.70 once the Brexit is underway.

At present I think the markets are awaiting the certainty the invocation of Article 50 will give financial markets, which will in turn boost Sterling’s value. I’m also expecting to see the strongly performing Aussie Dollar lose some value should the US Fed Reserve Bank begin hiking interest rates as is planned in the US, as a higher yielding Dollar will likely limit demand for the high yielding Aussie Dollar.

Aussie Dollar sellers are in the fortunate position of being able to convert their currency into Pounds at around 3 year highs. Those planning on selling AUD for GBP are able to improve on their outcome even further as our currency brokerage offers exchange rates that improve on those offered by the high street banks, therefore our clients receive more Pounds for the Aussie Dollars through us.

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.

Will the strong Australian economy continue to boost the Aussie Dollars value? (Joseph Wright)

The downward trend for the Pound to Australian Dollar looks likely to continue as the Australian economy is continuing to go from strength to strength.

Against many other major currencies the Pound hasn’t fared badly so far in 2017, for example the Pound last week hit its highest level against the Euro so far in 2017.

The Pound’s performance against the Australian Dollar on the other hand has been disappointing as it’s lost almost 5% since the beginning of the year. I personally put this down to Australian Dollar strength as the currency has been boosted by rising commodity prices as well as a strong economy.

In the early hours of this morning the health of Australia’s economy was once again underlined as the Australian Bureau of Statistics reported that GDP for the 4th quarter grew at 2.4%, and this figure was above the expectation of 1.9% analysts were expecting to see.

The GBP/AUD pair has been range bound between 1.60 and 1.70 for a while now but in recent weeks the pair have remained closer to the closer end of that trend, and I do think that if Brexit jitters in the UK increase and the Aussie economy remains on track I can see the pair fall below 1.60.

There has also been some better than expected data out of China in recent weeks which has boosted the Aussie due to the close business relationship between China and Australia.

If you are planning to make a currency exchange involving the Pound and the Australian 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.

Will GBPAUD fall into the 1.50s? (Dayle Littlejohn)

The Australian dollar has gained momentum against sterling and since the end of May 2016. GBPAUD exchange rates were fluctuating above 2 and throughout the last 9 months GBPAUD has dropped 38 cents and the next milestone would be to break into the 1.50s.

The reason why the Australian dollar has performed so well against sterling is that the Australian dollar has been strengthening and sterling has been devaluing.

Australian interest rates sit at 1.5% and speculative traders leave their assets within the Australian dollar to make a decent amount of interest. We have seen this occur even more in recent months as speculators have sold off US dollars to buy Australian dollars as Donald Trump policies are a risk for speculative traders. In addition Iron Ore a commodity that Australia heavily rely on as an export has been on the charge and is up 50%.

As for the pound, Brexit continues to steal the headlines and this week the House of Lords are set to give their verdict to whether Theresa May can start the process of leaving the EU towards the end of the March. Some Lords have stated they plan to block the Brexit Bill until amendments have been made. For example some of the Lords believe MPs should have a final vote on the deal Theresa May manages to negotiate with EU leaders.

It has been documented last week that the House of Lords could be abolished if they go against Government, therefore I believe they will not rock the boat and they will approve Theresa May’s Brexit plan. Consequently I expect the pound will come under pressure in the weeks to come and a shift into the 1.50s is on the horizon.

For Australian dollar buyers short term, it looks like trading sooner rather than later may be wise! 

If you are buying Australian dollars with pounds or selling Australian dollars to buy pounds, it’s worth getting in touch and taking advantage of the service we can offer. It’s my job to keep my clients up to date with regular market information, so they can make informed decision to when to purchase their currency.

In addition we can then provide the client with our award winning exchange rates and they can save money compared to using their own bank or their current provider. If you are planning on making a transfer with your bank in the upcoming months, for example if you purchasing a property in Australia or the UK and need to purchase a currency, it costs you nothing to send me an email with your requirements and I will outline in further detail the process of using our company, how you know your money is safe and the options available to you drl@currencies.co.uk. At that point you can make the decision to whether you wish to use our company.

We have the ability to offer our clients different contract options which will help the clients make as much money as possible. For example limit orders are useful when trying to target a certain rate and forward contracts when you are looking to purchase in the future.

I look forward to speaking with you Monday morning.

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! **