The GBPAUD exchange rate has dropped this morning by 0.75% since the announcement of the UK GDP figures. The data showed that output in the UK has declined by 0.7% between April and June according to the ONS. This is the third quarter in a row that this has happened. The first three months saw a drop of 0.3% so we could be in for a troubled period for the UK economy and Sterling. According to Alan Clarke from Scotiabank ‘this is a disaster for UK growth…and on average for the year, it’s looking very unlikely that we’ll be on the right side of zero growth. more likely we’ll be contracting.’
If we look at the currency markets it seem apparent that the data release was not full priced in as GBPEUR, GBPAUD & GBPNZD have all dropped this morning following the ONS official data. This movement highlights the volatility of the currency markets and the importance that you stay in contact with your experienced currency broker who can alert you when the markets move quickly. You can also utilise a currency broker to help you gain better exchange rates than your bank and help you with various tools such as Stops & Limits and Forward contracts which allow you to fix a rate up to two years in advance if required.
The Forward contract is particularly useful for those clients looking to emigrate which can sometimes take a long period of time before your official visa is granted. Therefore, you may wish to buy forward to know how much your money will buy. For further information as to how to save money when buying Australian Dollars or any other of the 35 currencies we trade please do not hesitate to contact me Tom Holian [email protected]