After years of negotiation and controversy, there is a finally a deal between Iran and the rest of the world for them to curb their nuclear program in return for lifting their crippling sanctions. As a result, Iran can finally export is massive stores of oil and other commodities which will flood the market and lower prices across the board. Countries who depend on commodities for their income, such as Australia, are viewed less confidently abroad, which weakens their currency further.
For more examples on how these fluctuations affect currency markets click here.
However, before this happened GBP-AUD rates were actually starting to slide. Sterling has received an artificial boost against all major currencies following a huge amount of capital flight from an unstable Eurozone and into safe haven currencies. Now that the first steps in an ‘agreekment’ have been reached, this money has been flooding back out of Sterling and into the Euro while the outlook is rosier.
So while this announcement lowered the value of the AUD in the short term, in seems the general trend has been shown to be going in the other direction. Those looking to buy AUD could be seeing the best rates available in 2015, we will know more tomorrow if the Greek parliament approve the bailout. I recommend emailing me overnight with your requirements, and I can respond tomorrow when we have a more solid viewpoint how the agreekment will progress and how this will impact GBP-AUD rates. Even if your requirements are not until later in the year, rates can be pegged at no additional cost – j[email protected]