Sterling lost value severely on the markets yesterday, with GBP/AUD falling by almost four cents between the high and the low of the day.
It seems that those with Australian Dollars to buy and were hoping that the recent news out of China (Australia’s largest trading partner) would continue to assist there purchase received a reminder that events in the UK have just as important a sway on GBP/AUD rates of exchange.
The cause of the drop is largely tied to ongoing flooding in the UK.
The mounting price tag on the public purse attached to infrastructure damage, seemingly now creeping towards a billion Pounds, is now not the only factor hurting Sterling’s value.
Economic performance in the UK is now feeling the effects. As an example, overnight on Monday retail sales figures for the month of December in the UK were released.
With the holiday period sales were expected to see significant growth, but the actual results ended in severe disappointment – again the blame can be put squarely at the feet of the recent flooding for inhibiting buying activity.
This is what has extended the recent loss of value for Sterling across the board on the currency markets by a factor of whole Cents – and this is a macro-economic pressure which won’t be lifting in the short term (already the flooding has been continual since the middle of December).
Australian Dollar buyers who are hoping the deteriorating situation in China will boost their purchasing power further may now instead find their currency purchase continuing to get more expensive.
A similar situation in October saw GBP/AUD rates rise rapidly, but this only lasted 2-3 weeks. While significant, the situation in China is already starting to lose steam in weakening the Australian Dollar as financial markets calm down.
I strongly recommend that anyone planning to purchase Australian Dollars over the next few months should contact me on 0044 1494 787 478 and ask the reception team here for Joshua 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 if you do not require currency until a later date these currently favourable levels can be fixed to avoid any further losses occurring as more news about UK economic performance is released this week and next.
Those with AUD to sell can do the same, and I can explain how to ride any further favourable movements to their peak in the time period you have to complete your transfer. [email protected]