When rates last went above 1.70 they were soon back down below 1.70 in to the 1.60’s. And so as we go higher than 1.80, rates are soon back down in the 1.70’s. It is likely they will spike back up through the 1.80’s, the trend is definitely heading North.
So long as there is a prospect of further rate cuts in Australia and the UK is on course to raise interest rates, the market will continue in this direction. The pace and reasons for day to day shits will change but with the UK appearing to be on a much firmer footing sterling should remain well supported. If you are selling a property or moving a large sum of Australian dollars now is a good time to debate the merits of a forward contract.
By locking into a rate in advance you will know exactly what you are getting and will not run the risk of suffering if rates unexpectedly move against you. For more information on the latest new and everything to beware of when moving money internationally please feel free to speak to me Jonathan on [email protected]