The Australian Dollar has rallied against the Pound throughout the third week of November and has finally broken through 2.10 on GBP/AUD exchange rates.
The past few months has seen the Pound continue to be burdened on the currency markets by lacklustre inflation. It proves that our current recovery is based on a rocky-foundation and is continuing to push back hopes of an interest rate rise in 2016 for the UK – one of the reasons why the Pound was in such high demand until recently, keeping GBP/AUD up at 2.15.
Mark Carney, the Governor of the Bank of England, stated at the start of the month that the current consensus among the 9 members of the Monetary Policy Committee is that a hike in 2016 seems almost off the table. The reason for such an an unsually negative statement from the handler of the UK’s economic reins, is that further problems with inflation are expected before they get better.
Inflation hearings have been called as a result for the Bank of England to answer to the government’s Treasury Committee for why the UK’s recovery is so off track. However, these have now been delayed for two weeks in a row.
The delays have heightened the anticipation of the event, which explains the exaggerated Sterling weakness at the end of last week, and the resulting fall on GBP/AUD.
With no data to be released on Monday to divert attention away from the looming inflation hearings, where the UK’s poor performance will be scrutinised incessantly, GBP/AUD should face further pressure at least until the end of next week when UK GDP data is released.
I strongly recommend those with a GBP/AUD requirement in the coming weeks should contact me on 01494 787 478 and ask the reception for Joshua to receive a competitive quote on their transfer and to discuss how these currently high rates of exchange can be fixed to avoid further harmful movements against your favour.
Those with AUD to sell can do the same, and we can discuss a strategy within the allotted time you have to complete your transfer in order to ride any moves in your favour to maximise your Sterling return. [email protected]