After a dreadful start to the week with GBPAUD exchange rates in the lower levels of the 1.70s mark we have seen a dramatic comeback by Sterling to almost 1.80 during Friday afternoon’s trading session.
The uncertainty surrounding the Scottish vote at the start of last week saw Sterling drop very quickly against the Australian Dollar but has since gained almost 8 cents in a week. Such large movement can also be attributed to what is happening in the US.
With the world’s leading economy about to end their tapering in October and a suggestion that US interest rates may rise in the next 6 months investors are again buying US Dollars. If you’re transferring Australian Dollars and Sterling why would this make any difference to me you may ask?
With the ECB having cut interest rates earlier this month and the instability surrounding the United Kingdom investors have bought the US Dollar and sold off riskier currencies including the Australian Dollar. The movement has been very quick which signals to me that investors are nervous about holding the Australian Dollar which was a large reason for the fall last week.
With the Scottish referendum due on Thursday this week I think we’ll see further uncertainty which could well see the GBPAUD rate go upwards of 1.80 this week.
The RBA minutes are published early Tuesday morning which could also cause volatility.
If you have a currency transfer to make and want to save money on exchange rates compared to using your bank then contact me directly for a free quote Tom Holian [email protected]