GBPAUD rates have remained volatile this week moving by over 2 cents between the high and the low. This equates to a difference of over $4,000 on a £200,000 transfer and again goes to show how important timing a trade can be in the currency market, and this week has been quite up until now. We have had Australian Central Bank information and speculation around an interest rate change in AUD. Today is the UK’s tern with the Bank of England meeting later. It is unlikely that anything will change and interest rates will remain at 0.5% where they have been for over 5 ½ years. There is however a potential that the BOE could bring forward forecasts on interest rate change to the end of this year rather than the beginning of 2015. This could easily make a big impact on the currency market and would give the Pound strength if confirmed, in turn making buying AUD cheaper.
If I was a GBPAUD buyer I would be waiting till later this afternoon UK time, if I was a AUD seller I would be waiting until next week. Longer term we have even more information due next week that will impact the currency market.
It is also worth noting that the European Central Bank meets later too, they are expected to lower borrowing costs in an effort to push up inflation that will probably weaken the single currency as a result. This could potentially have an impact on the value of the Pound against most currencies as the UK’s largest trading partner is Europe.
For more information, forecasts updates, live quotations or to discuss your situation with an expert contact the author – STEVE EAKINS – via email at [email protected]