Sterling has continued to fall this week vs the Australian Dollar as the Pound comes under pressure against all major currencies.
Opinion appears to be divided on which way GBPAUD rates will go in the short term but longer term I think we will see exchange rates improve for GBPAUD.
The reason behind my thinking is that the economy down under appears to be unbalanced and with interest rates potentially going to be cut in the future by the RBA we could see the AUD weaken vs the Pound.
The mining industry has really struggled as of late with jobs being cut and growth forecasts being lowered.
Further with Chinese growth being lowered this has also led to problems for the Australian Dollar.
The one positive recently for the Australian Dollar has been the change in leadership from Tony Abbott to Malcolm Turnbull and this change has led to a renewed short-term confidence for the AUD.
UK GDP figures are due out on Wednesday and this could be the next catalyst for change in exchange rates and I think we could see some Sterling strength next week.
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