GBP/AUD rates got a welcome boost today with a sudden and drastic fall in oil prices this afternoon.
The news that Iranian oil had finally entered the marketplace after sanctions lifted caused oil prices to shift down yesterday, but as Australia itself is not heavily linked to the oil industry the effect on GBP/AUD was negligible.
However, further news today that there was already a larger glut than expected in global oil stock before the introduction of the new Iranian stock caused oil prices to fall to the lowest levels since April. There was enough of a market shock to cause price falls across all commodity prices, including minerals such as iron ore, and the Australian Dollar has weakened heavily as a result.
The ripple throughout commodities are already stabilizing and GBP/AUD is back down to 2.13. However, it seems like Sterling may receive the boost necessary overnight for 2.14+ to be seen on the markets once more.
Governor of the Bank of England, Mark Carney, will be speaking at tonight about the potential ramifications of a UK exit from the Eurozone. Markets will be reacting heavily to his speech as many believe his intervention in the Scottish referendum was key to Britain staying together as a nation. As a firm unionist he will likely point out the necessary benefits of staying in the EU for the British economy (which is supported by the Banking world and most major businesses) but may highlight areas of reform for the UK to have greater control of its own financial regulation.
Many have been concerned at the recent momentum the EU exit (Brexit) campaign has been garnering in the UK, and an overall position of support from Carney will likely serve the Pound well and foster strength on its currency pairings.
The referendum itself will not be for another year or more, but any spikes should certaintly be something to tempt Australian Dollar buyers, particularly as this is coinciding with an unexpected spike following the oil shock this afternoon.
I strongly recommend that anyone who has Australian Dollars to buy should contact me on [email protected] to discuss a strategy on how to maximise your Sterling value on this currently favourable market. You can also request a free, competitive quote on your transfer which is the other side of the coin in ensuring the best return on your exchange.
Anyone who wants to take advantage of this expected spike, but does not require their currency until later in the year, can peg any favourable rates they see to prevent further volatility affecting the cost of your transfer.