With only a few hours until Ben Bernanke’s speech at Jackson Hole which is due to take place at 3pm BST all eyes will be on the summit later. Owing to the lack of certainty Stocks and currencies have remained relatively stable over the last few days. My personal belief is that he will talk about general economic policy and not announce QE3 as the US elections are only round the corner. The GBPAUD exchange rate has improved over the last few weeks from 1.47-1.53 as investors move away from riskier currencies and back towards safe havens including Sterling and the US Dollar.
However, yesterday the British Chambers of Commerce announced that UK GDP would shrink by 0.4% for 2012. For 2013 it has also cut its forecast from 1.9% to 1.2%. It is important that whenever you are considering buying currency that you look at both sides of the pair to make a more informed decision as to when may be best suited for you to buy your currency.
Part of the reason why the Australian Dollar has weakened is that the Euro zone crisis talks held this week saw a bit of confidence returning to the Eurozone and therefore a small sell off of more riskier currencies including the Australian Dollar. If you would like more up to date information to help you make the most out of your currency transfer feel free to drop me an email Tom Holian [email protected]