Australian Dollar Forecast UK Quarterly Inflation Report Eurozone major currencies EU Bailout Fund Exchanging Currency Converting Sterling into Australian Dollars GBP to AUD Best Rates
Yesterday’s UK Quarterly Inflation Report saw Sterling drop by 0.5% against most major currencies and saw it slip away from 1.60 which it has been trading against the Australian Dollar recently. Sterling has appeared to be the currency of choice for the last few weeks as investors look for a safe haven away from the European Debt Crisis. However, Mervyn King having cut the UK’s growth forecast from 1.2% to 0.8% does not instill confidence for either the UK or Sterling in the short term. However, that is the point the recent run for Sterling has been stopped as of yesterday but to me I’m quietly confident that it was short term as the problems in the Eurozone will not disappear any time soon. Indeed, there are further market fears surrounding the Greek situation with continuing speculation over the threat of a Eurozone exit with confirmation that mew elections will be held on 17th June. Without a current government Greece is unable to agree the austerity measures put in place by the EU Bailout Fund so in theory may not receive their next bailout if the EU has anything to do with it.
The FOMC confirmed there are risks to the loss of momentum for the US’s economic outlook. This in turn could be detrimental for anyone looking to buy US Dollars because if the world’s largest economy starts to slowdown again it could have an impact on the riskier Australian Dollar. ECB President Mario Draghi mentioned yesterday that he is concerned that Greece may leave the monetary union but went onto confirm that the ECB would do everything in its power to keep Greece in the 17 nation euro area. According to some economists Greece’s possible exit from the Euro is negatively affecting the market and if this continues it will be detrimental to both the Australian Dollar and the New Zeland Dollar.
If you need to convert Sterling into Australian Dollars or send money abroad and are looking for competitive exchange rates please do not hesitate to contact me Tom Holian [email protected] I am frequently asked by my clients about how to save money when exchanging currency so if you have any specific questions feel free to get in touch and I’ll do my best to help you.