With oil prices now falling to below USD$40 per barrel this is good news for anyone filling up their cars as it means for the first time in years that petrol pumps in the UK are selling petrol for below £1.
However, for any commodity based currency this is not good news.
We have already seen GBPZAR rates hit record highs this week and Sterling vs Australian Dollar has now risen to 2.11+ at the time of writing this article.
The US Federal Reserve are due to meet on Wednesday and there is a very strong possibility that we will see the US announce a rate hike.
The Fed have already stated on a number of occasions that a rate hike is data dependent and with last week’s jobs data the best in years I think it will almost definitely happen.
This is arguably another reason for the Australian Dollar losing strength during the course of the week against the Pound.
With the Reserve Bank of Australia meeting due out on Tuesday I think we could see a very brief period for AUD strength but for the rest of the week I expect to see big gains for the Pound vs the Australian Dollar.
If you have a currency transfer to make and want to save money on exchange rates compared to using your own bank then contact me directly for a free quote. Tom Holian [email protected]