Tag Archives: Tom Holian

Will the Tories agree a deal with the DUP and the impact on GBPAUD exchange rates (Tom Holian)

We are now a year on from the Brexit vote when the British public voted in favour of leaving the European Union and as yet we are still a long long way off from a clear vision as to what things will look like in the future.

Theresa May has been in Brussels this week and has suggested that the UK would look to guarantee rights of EU nationals living in the UK of which there are over 3 million. This is clearly a step in the right direction but the EU has not confirmed any reciprocal arrangement.

At the moment the UK political landscape is extremely uncertain as the Tories have not set an agreement between themselves and the DUP and with the vote of the recent Queen’s Speech due to take place next week if a deal is not reach then things could go wrong very quickly for the Tories.

This is not good news for the Pound as we are still in a hung parliament and it is now over a fortnight since the election result. I personally think a deal is coming and this is likely to happen next week. In my opinion I think this will help the Pound recover some of its losses against the Australian Dollar.

However, I think the gains will be short lived as the Brexit talks are likely to be long and protracted. Therefore, if you’re looking at buying Australian Dollars keep a close eye on what is happening politically and get ready to move quickly if a deal is reached.

If you have a currency transfer to make and would like to save money on exchange rates compared to using your own bank then contact me directly for a free quote and I look forward to hearing from you. I have worked for one of the UK’s leading currency brokers since 2003 and I’m confident of being able to offer you better rates when buying currency as well as helping you with various contract types.

Tom Holian teh@currencies.co.uk

The impact of Brexit on the Pound vs the Australian Dollar (Tom Holian)

The Pound has endured a difficult last 2 weeks with the GBPAUD exchange rate falling below 1.70 after comfortably trading above that level for a while.

The Pound has been blighted by what has been happening politically and with the Tories failing to form a majority government in the recent elections the uncertainty is causing issues for Sterling.

Indeed, we have still yet to form a majority government and when this happened last time it took 20 days before the Lib Dems and Tories formed the coalition.

Next week the focus will turn to what is happening with the Brexit issue which as we all know caused such a huge problem for the Pound against all major currencies including vs the Australian Dollar this time last year.

As yet the UK has not confirmed whether it will try and opt for a hard or a soft Brexit and as we are still not settled politically there is a lot of uncertainty in the market which is why I think we may see further losses for the Pound vs the Australian Dollar in the near future.

On Tuesday the Reserve Bank of Australia will announce its latest set of minutes from its recent meeting and this is likely to have a small impact on GBPAUD rates but overall I think the Pound will be negatively affected by the Brexit negotiations. Therefore, if you need to send money to Australia it may be worth taking advantage of the current rates.

Having worked in the foreign exchange markets since 2003 for one of the UK’s leading currency brokers I am confident not only of being able to offer you better exchange rates compared to using your own bank but also help you with the timing of your transfer of currency.

If you would like further information or a free quote when buying or selling currency and would like to save money then contact me directly and I look forward to hearing from you.

Tom Holian teh@currencies.co.uk

Bank of England vote causes short term spike for the Pound vs the Australian Dollar (Tom Holian)

The Bank of England have caused a big stir in the foreign exchange markets during today’s session as we have seen a 5-3 split in favour of keeping interest rates on hold.

For the last few months the split has been 7-1 but owing to rapidly rising inflation this is the reason used for the change in the voting pattern.

This vote brings with it a suggestion that interest rates in the UK may be rising sooner than expected and this has helped the Pound to make gains vs the Australian Dollar.

Inflation is now at 2.9% which is close to the highest level in 4 years and with the target set by the Bank of England for 2% this is becoming a problem for the British economy.

With UK Average Earnings falling and inflation rising this is causing the cost of living to go up which is not good news so an interest rate hike could be coming sooner.

I still think this positive jump for the Pound vs the Australian Dollar is short term as the UK has still yet to form a majority government and as yet we do not know when this may happen. When a hung parliament occurred last time it could a total of 20 days before it was sorted.

The other problem that Sterling faces is that of the Brexit negotiations which are officially due to start on Monday and the likelihood at least in the short term is that the talks will be problematic. Therefore, if you’re thinking about buying Australian Dollars it may be worth organising in the near future.

Having worked in the foreign exchange markets since 2003 for one of the UK’s leading currency brokers I am confident not only of being able to offer you better rates of exchange when buying or selling Australian Dollars but also help you with various contract types.

If you would like further information or for a free quote then contact me directly and I look forward to hearing from you.

Tom Holian teh@currencies.co.uk

 

 

Election result causes the Pound to fall against the Australian Dollar (Tom Holian)

The Pound plummeted against the Australian Dollar on Thursday night when the initial exit polls were released. During the last 12 months polls have been inaccurate firstly being completely wrong with the Brexit vote and secondly with the Trump victory.

However, the exit polls this time round were spot on and this saw the Pound fall by 3 cents against the Australian Dollar. The market continued to see the Pound fall against the AUD during early Friday morning before stabilising by midday.

At the time of writing the Tories are looking to sort out an agreement with the DUP in order form a majority as they are still a few seats short of being able to form a majority government.

Following the previous election when we saw a hung parliament this weighed heavily on the Pound against all major currencies as the negotiations were rather protracted. This time round I think the Tories are a little more prepared so I think a deal could be reached very quickly as the DUP even on the election night suggested that they would be open to the idea.

However, although I expect the talks to go through quickly on this occasion the next problem will be just over a week away when the Brexit negotiations begin.

The suggested date is for June 19th and as we have already seen the European leaders are opposed to the Brexit and so I think they will make the negotiations as difficult as possible in order to discourage any other countries to think about leaving the European Union.

Therefore, I think we’ll see further problems coming during this month for the Pound vs the Australian Dollar.

If you would like further information about buying or selling Australian Dollars or for a free quote then contact me directly and I look forward to hearing from you.

Tom Holian teh@currencies.co.uk

 

Will the Tories win and what could happen to Pound vs Australian Dollar exchange rates? (Tom Holian)

We are now just a few hours away from the result of the latest general election and at the time of writing it looks as though the Tories will clinch victory.

At the moment the markets are relatively quiet in anticipation as to what may happen overnight. It is not yet clear what time we should expect the vote but we are likely to see volatility for GBPAUD exchange rates overnight.

My suspicion is that we will see a Tory victory but if the voting is close or if we even have a hung parliament this could cause big problems for the Pound overnight.

However, a Tory victory is likely to provide the markets with some certainty for the next few years and this typically results in strength for the currency involved and in this case Sterling.

As we have seen during the course of 2016 with both the Brexit vote as well as the Trump victory the market can be full of surprises and the opinion polls can be dramatically wrong causing big movements on the foreign exchange markets.

One issue longer term is that even if we do see the Tories win with a majority the boost for the Pound may be short lived as it means that the Brexit negotiations will be allowed to begin and this is likely to be a very challenging period for both British political will as well as the British economy.

Having worked in the foreign exchange industry since 2003 I am confident not only of being able to offer you bank beating exchange rates when buying or selling Australian Dollars but also help you with the timing of your transfer.

If you have a currency transfer and would like further information or a free quote then contact me directly and I look forward to hearing from you.

Tom Holian teh@currencies.co.uk

 

Pound falls against the Australian Dollar owing to opinion polls (Tom Holian)

Sterling vs the Australian Dollar has fallen at the end of this week after the latest polls showed that the vote between the Tories and the Labour party is getting much closer.

According to one poll the vote is as close as 5%. As demonstrated in 2016 opinion polls can be very wrong as we saw with both the Brexit vote and the Trump win but to me it highlights the importance of getting to the polling station and ensuring you vote for the party who you want to win.

If one party shows a huge lead in the polls it can mean complacency on the part of some voters and this could mean a difference to the expectation.

With the poll showing a much closer than expected difference this caused the Pound to fall. Typically if an existing government wins the election this results in economic certainty and this often will result in Sterling strength against all currencies including vs the Australian Dollar.

Therefore, with the change in opinion this is a big factor as to why the Pound has fallen from recent highs against the Australian Dollar and if the voting gets closer then this could potentially even see GBPAUD rates fall below 1.70 on the Interbank level.

However, in my opinion I cannot see anyone win but the Tories as shown with the recent local elections and once this happens this is likely to see GBPAUD exchange rates go back in an upwards direction.

Therefore, if you’re thinking about selling Australian Dollars then this could the opportunity you’ve been waiting for.

With less than two weeks to go if you would like to make a currency transfer and save money compared to using your own bank then why not contact me for a free quote. I work for one of the UK’s leading currency brokers and have done since 2003 so I’m confident that a quick email could save you a lot of money.

I look forward to hearing from you.

Tom Holian teh@currencies.co.uk

What next for Sterling vs the Australian Dollar? (Tom Holian)

The Pound has had a mixed week vs the Australian Dollar after Australia announced another 37,400 new jobs last month compared to the expectation of just 5,000. However, although this is good news employment fell by over 11,000.

The mixed data caused a brief bout of strength for the Australian Dollar vs the Pound but since then we have seen GBPAUD exchange rates once again hit 1.75 on the Interbank level.

The Australian Dollar has been under pressure for the last two months caused by both the slowdown in the US as well as China and a fall in the value of commodities.

The problem that the Australian economy is facing in general is that both the Melbourne and Sydney property markets are still very buoyant but the economy down under is struggling particularly the mining industry.

Therefore, under a more settled environment the Reserve Bank of Australia may have looked to cut interest rates in an attempt to rejuvenate the economy but if they do this would simply just exacerbate the problem for the Australian property market.

Therefore, this is part of the reason why in my opinion the Australian Dollar has weakened recently.

Also, if we turn the focus towards what is happening politically in the UK we appear to be more settled and the likelihood is that the Conservatives will win next month’s general election due to take place on 8th June.

Typically, when the existing government wins the next election this tends to provide the economy involved with a positive boost as it gives businesses stability and more often than not this results in Sterling strength.

However, this time as there appears to be no obvious opposition to a Tory win next month so it could be argued that the exchange rate movement for GBPAUD exchange rates is already priced in.

If you would like more information or a free quote when buying or selling Australian Dollars then contact me directly. Working for one of the leading currency brokers I am able to offer you bank beating exchange rates.

Tom Holian teh@currencies.co.uk

 

 

Will the Pound recover its losses against the Australian Dollar? (Tom Holian)

The Pound has ended the week with two consecutive days of falls vs the Australian Dollar after a difficult day of UK economic data on Thursday.

The Quarterly Inflation Report showed that inflation is predicted to hit 2.8% with average earnings hitting just 2%. Therefore, this means that the cost of living is rising whilst wages are falling.

This led to the Pound falling against the Australian Dollar after making consistent gains for a number of weeks. Indeed, compared to a month ago when rates were struggling to break past 1.60 we have now seen GBPAUD rates trade as high as 1.77 during the course of this week.

However, it appears at least for the moment that the positive run for Sterling vs the Australian Dollar has now come to an end.

On Tuesday the Reserve Bank of Australia will release their latest minutes from their previous meeting.

With the central bank having kept interest rates on hold for the 9th consecutive month recently I think we could see a small weakening for the Aussie Dollar vs the Pound if the RBA confirm that there is little appetite for any change in interest rates.

During this month with the Tories set to dominate the general election I think this could result in further stability for the UK which in turn could help the Pound challenge towards 1.80 to buy Australian Dollars.

Having worked in the foreign exchange industry since for almost 15 years for one of the UK’s leading currency brokers I am confident that not only can I save you money on exchange rates compared to using your own bank  but also help you with various options including forward contracts which allow you to fix an exchange rate for a future date for a small deposit.

To find out more information or a free quote when buying or selling Australian Dollars then contact me directly and I look forward to hearing from you.

Tom Holian teh@currencies.co.uk

 

 

Was today a blip for the Pound vs the Australian Dollar? (Tom Holian)

For the first time recently Sterling has fallen against the Australian Dollar as the positive movement for the Pound seems to have been halted in its tracks. This has provided Australian Dollar sellers with a respite and a good opportunity compared to the last few days.

The Bank of England kept interest rates on hold earlier today which came as no surprise but the central bank has announced a cut in the growth forecast.

The Quarterly Inflation Report suggested that inflation would hit 2.8% whilst average earnings would hit 2% and this caused investors to sell off Sterling which has led to a 2 cent drop from the high to low between the Pound and the Australian Dollar.

We end the week with some Chinese data overnight and arguably more importantly US inflation data tomorrow afternoon.

With the US economy having been struggling with growth recently it will be interesting to see what happens with with tomorrow’s release. In recent weeks the negative data in the US has shown problems for commodity based currencies and this is why we have seen such a large movement in Sterling’s favour vs the Australian Dollar.

The other reason for Sterling’s gains over the last month is that things are looking more politically stable in the UK with the Conservatives appearing to be unchallenged at the moment. The stability of having another term of the same government has helped to strengthen the Pound vs the Australian Dollar.

Although today the Pound has fallen vs the Australian Dollar I think we could see the Pound challenge 1.80 at some point in the run up to next month’s election.

If you have an upcoming currency requirement and would like further information or free quote when converting Australian Dollars then contact me directly and I look forward to hearing form you.

Tom Holian teh@currencies.co.uk

 

 

Will the Pound continue to make gains vs the Australian Dollar? (Tom Holian)

If you’ve been reading the articles on this site for quite some time you’ll realise that one of the biggest influences on the strength or weakness of the Australian Dollar is the relationship between the Australian and Chinese economy.

Chinese economic data has been rather mixed in recent weeks which has caused part of the weakness for the AUD vs the Pound but a slowdown in the US has also caused problems for a lot of the commodity based currencies.

The US has suggested that although there is room for an interest rate hike it will be some time before this happens so this highlights that the US economy may not be performing as well as previously thought.

With a slowdown in the US this has caused the Pound to make big gains over the last few weeks vs the Australian Dollar and the difference of £7,500 on a currency transfer of AUD$200,00 over the last month alone.

With the RBA earlier this week confirming that interest rates will be left on hold for the 9th month in a row this has also cause the AUD to weaken vs the Pound.

All in all this is good news for the Pound vs the AUD.

The UK election campaign is now in full swing and at the moment the Conservatives are winning a huge amount of seats.

With the general election due to take place on 8th June I think this will provide further support for the Pound in the weeks ahead so keep a close eye on the election campaign which is likely to provide volatility during this month.

If you would like to compare rates vs your own bank then contact me directly for a free quote and I look forward to hearing from you. A quick email could save you a lot of money when buying or selling Australian Dollars.

Tom Holian teh@currencies.co.uk