Following the release of last night’s Minutes by the US Fed, the Aussie has lost a fair bit of ground against it’s US counterpart, but has held pretty steady against most other majors including the pound and the Euro. Yellen’s commentary took the markets a little by surprise, which caused a flight into the greenback. Whilst I think this may settle slightly, I still think the Aussie will hold its own against sterling given that neither central bank is likely to be changing policy any time soon. To my mind though the Euro is still overvalued. Inflation figures come out for the single currency at the end of the month, and if this is on the low side we could see another raft of Euro sellers worried about what the ECB will do going forward (Draghi can’t keep waving his magic wand and telling everyone it will all be ok!).
To this end if you are buying or selling GBP AUD then I would look to use stop loss and limit orders to try and maximise things. However if you are transferring Aussie Dollars into Euro then I would be inclined to wait and see how the inflation data pans out. On the other hand if you are exchanging Euro into Aussie then I would be inclined to move quickly before some of the recent highs disappear. In any event if you would like help getting the best rate on a currency transfer please feel free to contact Colm at email@example.com or call me on 01494 787 478