This week we had what was scheduled to be the busiest day of the month for the Pound. We saw quite a change in the fortunes in the Pound following the release of UK Unemployment and the Quarterly Inflation Report. This is when the Bank of England gives an update on the UK economic performance and forecasts along with views on when potential change to policy will happen. Focus is very much on the expected date when Interest Rates in the UK will start to climb.
The summary include:
- Upbeat Bank of England as they increase growth forecast for 2013 to 1.6%, 2.6% for 2014.
- Record numbers now in work as unemployment rate falls to four-year low
- Interest rates to potentially change as soon as the end of 2014.
- 1.4 million are in part-time work but want a full-time job, ONS says
- David Cameron says figures are proof government’s plan is working
As a result of the above rates have climbed for the UK by nearly 2 cent against a basket of currencies. A welcome boost for GBPUSD transfers as on Wednesday this had reached a near 2 month LOW. GBPAUD rates reached a near 5 week high making it an attractive time to buy. It now currently sits over the 1.70 level well over the average of the year 1.59
Generally I think the trend will be negative for you as a AUD seller, data from the UK have been brilliant and in Australia they are weakening. Plus the Reserve Bank of Australia has been fairly open about their hope to weaken the strength of the dollar so in turn to help their economic export. If I was in a position selling AUD the timing would really depend on the availability of funds and the time frames I was under. If this was for a transfer before Christmas I would hope to get a better price than now, however if it was for a trade in 2014 I would be using a FWD contract to avoid any risk.
If you are in the situation needing to move money internationally and looking for the best price – please feel free to contact the author – STEVE EAKINS – via the telephone number at the top of the page or via email at [email protected]