GBP/AUD rises with reduced chance of EU exit (Joshua Privett)

Pound Pushes Higher Against the Australian Dollar on Recent Economic Divergence

GBP/AUD exchange rates have risen as further confidence was put into Sterling following the speech given by Bank of England Governor Mark Carney last night.

Rates almost reached 2.15 with his stirring speech which overwhelmingly supported the UK remaining in the EU.

Carney’s speech last year was seen as influential in keeping Scotland in the United Kingdom by discounting the feasibility of a currency union. By stating that ‘EU membership reinforces the dynamism of the British economy’ and that ‘neither openness nor any obligation of EU membership ultimately prevents the Monetary Policy Committee from doing its job’, he dismissed the major arguments for a ‘Brexit’ in one fell swoop.

Significant investment must have been pouring into the UK economy for GBP/AUD to rise more than a Cent overnight, as investors felt more secure taking long-term positions on UK economic growth.

Rates have, however, already fallen from 2.147 to 2.141. This is not due to any data releases but is simply a reflection of the net increase in people purchasing Australian Dollars due to the sudden cheapening of their transfer.

The fact that the Dollar is on the verge of hitting 2.13 as I write this article also reflects the recovery in commodity prices from the sharp spike downwards yesterday.

There is no data until next week to cause any further spikes in favour of buyers so I strongly recommend that anyone with Australian Dollars to buy should contact me on 01494 787 478 and ask the reception for Joshua to discuss a strategy on how to maximise your Australian Dollar return and receive a competitive quote on your transfer.

The above movements highlight the importance of being the first to jump on any spikes in your favour, if you have any transfers planned this year we can also discuss the best way to buy at the high of the market before any corrections occur. jjp@currencies.co.uk