The GBPAUD exchange rate has improved overnight as news from Cyprus filtered through the fx. Over the weekend the IMF and EU has put plans in place for bank customers to pay a levy of €10bn. The levy means a charge of 9.9% of accounts overs €100,000 and 6.75% on anything below. This has caused equity markets worldwide to fall and this could possibly have a negative affect on the Australian Dollar. My thoughts are that as the AUD is seen as a more riskier currency investors may shy away in the short term pushing rates back up for Sterling Aussie.
Tomorrow the Reserve Bank of Australia is due to publish minutes from their latest policy meeting. I don’t think the news will come as a surprise so it’s unlikely that this will affect exchange rates.
The UK Budget is due on Wednesday and all eyes will be on what Chancellor George Osborne has to say. Many analysts are hoping for promises of growth so if the Chancellor delivers we could see GBPAUD exchange rise off the back of this news. With the Cypriot news due to dominate the headlines this week I think Sterling will be the main benefactor and we could see rates improve.
If you would like to be kept updated with advantageous AUD exchange rates please email me directly Tom Holian [email protected] quoting ‘CURRENCY SPIKE ALERT’ in the title of your email with a brief description of your currency requirement and I look forward to hearing from you.