It was a terrible week for the Pound against the Australian Dollar. For the first 4 days of the trading week GBPAUD plummeted from 2.015 to 1.93. The market seemed to level out on Friday and consequently found a new range around 1.9450. A 200,000 Australian Dollar purchase is now £3,500 more expensive now compared to this time last week.
The UK’s referendum in regards to leaving the European Union is heavily weighing down on the Pound. Big names such as Mayor of London Boris Johnson and Justice Secretary Michael Gove are backing the ‘out’ campaign which led to the pounds plummet throughout the week.
An HSBC report last Wednesday has predicted if the UK were to leave the European Union Sterling could lose 20% against the major currencies therefore I expect Sterling will continue to slide all the way up to June 23rd.
The week ahead
The RBA latest Interest Rate decision is due Tuesday Morning at 3.30am. Last months minutes suggested an improvement in the housing market and consumer spending due to low interest rates which could suggesting cutting rates would further improve the housing market as the public lean towards spending than saving. However I don’t expect to see a cut at this interest rate meeting however a cut within the next 6 months is likely.
As for the Pound all eyes should remain focused on commentary from both campaigning parties. If more influential members of parliament this week join the ‘out’ vote I expect GBPEUR could continue to fall.
If you are buying or selling Australian Dollars I would recommend getting in touch to put a strategy in place which will maximise your returns. In order to protect you against market fluctuations we have different contract options available that will meet your needs and requirements. In addition if you have a currency transfer that is imminent and you want to save money on exchange rates compared to using your own bank or the brokerage you already use then contact me directly for a free quote. Dayle Littlejohn [email protected]. Alternatively if you would prefer to call me Monday morning +0044(0)1494 787 478 and ask for Dayle Littlejohn.
For a free quote please provide as much information as possible:
- Currency Pair
- Reason for the transfer
- Best number to contact you on
Enjoy the remainder of your weekend and I look forward to speaking with you Monday morning.