Yesterday saw Sterling crash dramatically on the currency markets. To buy Australian Dollars, for GBP/AUD rates of exchange, we saw falls yesterday from a high to a low of almost 4 cents.
UK debt levels in both the public and private sectors were the main instigators for this sharp decline in Sterling’s value.
On Monday it was revealed that private debt in the UK had soared to £40bn, an alarming change when just a few years ago the economy was in a surplus of £70bn.
Tuesday compounded this apprehensive view towards Pound Sterling with Public sector net borrowing figures rising as well.
However, it seems that the gains made by the Australian Dollar were simply too large to be extended in such a short period of time, which is why we have seen recoveries this morning.
With no data out for the UK or Australian economy in the short term, its likely that this recovery on GBP/AUD will continue as rates correct themselves further.
Those with Australian Dollar to sell should be looking to sooner rather than later in order to take advantage of these recent favourable movements. You can contact me on 01494 787 478 to receive a free quote on your transfer. [email protected]