Sterling finished yesterday’s trading down against all major currencies ahead of the first look of growth figures for the UK economy during the final quarter of 2015.
This was by far the most testing period of the year for the UK economy, due to the first bout of global uncertainty in the financial sector caused by ‘Black Monday’ in China, as well as the more serious hindrances caused by the flooding in the North, West, and most recently the South-East of the country.
This is why Sterling was beginning the weaken ahead of the announcement this morning as markets were worried that the results could be even worse than first anticipated.
Whilst the figures came in poorly, the drastic falls the currency markets were concerned about never manifested. Sterling regained some of its losses from the day before which has allowed GBP/AUD to improve.
Next week will see the start of a new month and the first look at how both the UK and AUD have performed in January.
With the flooding having continued into the start of 2015, it seems like anyone looking to buy AUD will need some form of weakness in the Australian economy in order to see rates improve in their favour.
This is possible but unlikely. Whilst commodity markets were hit last month, most of the orders for January would have been paid for ahead of time. We’ll have a delayed fuse on that hurting the Australian economy for a couple of months at least.
Furthermore, high tourist season tends to keep the Australian Dollar in good stead as spending activity is high – which was shown in the positive inflation figures produced by the Australia (in stark contrast to the UK who are currently experiencing the worst inflation levels since records began).
Though incredibly volatile there has been an overall negative trend established since the end of December for GBP/AUD exchange rates, and as the above describes, the overriding factors accounting for this have not faded away.
I strongly recommend that anyone with Australian Dollars to buy in the coming months should contact me on [email protected] to discuss a strategy for your transfer in order to maximise your Australian Dollar return.
I have never had an issue beating the rates of exchange offered elsewhere, and these current rates whilst the interbank level is still above 2.0 can be fixed to avoid any harmful movements affecting your future transfer. 01494 787 478