Sterling’s sharp February slide is continuing almost unabated. GBP/AUD are still seeing the most positive buying levels for anyone holding Sterling compared to the likes of the Euro and the USD. The question is currently how long this will be the case?
It is not that rates are improving for Dollar buyers. It is that they are gradually winding downwards, rather than the sharp slides Sterling is seeing elsewhere.
There is still about 3-4 cents difference between the high on the low of the day for buying Australian Dollars, which shows just how volatile the current market truly is.
This does mean that despite a down market, daily opportunities can emerge in the meantime which is why a premium is currently put on the ability to move quickly if you are currently in the market with a GBP/AUD buying requirement.
The reason for the slide on Sterling’s value is rooted in the global slowdown which is becoming a mainstay of front-page news. Originally the effects were concentrated in the retail, industrial, and manufacturing sectors. However, due to recent global slides in the stock markets, this has now put a large weight on the UK’s financial service sector as well.
With financial services commonly known as the engine room of the British economy, this was the final straw for much of the confidence in Sterling on the currency markets, so the recent gradual decline has turned into a sharper fall.
The only reason GBP/AUD is not rapidly declining is that the main cause of the recent global slowdown is due to the worsening situation in China. This is causing the Australian Dollar to weaken alongside the Pound as a result Australia’s close trading ties with South East Asia.
Yet from the net losses recently on GBP/AUD, it is quite clearly Sterling which is weakening far more extensively.
As this global slowdown is not a short-term phenomenon I would be surprised if the magic 2.0 barrier was not tested later this month, many on smaller transfers are already buying well below 2.0 as a trading level.
I strongly recommend that anyone with Australian Dollars to buy in the coming weeks should contact me on [email protected] in order to discuss a strategy for your transfer and maximise your Australian Dollar return.
Limit orders are a popular option in a volatile market, whereby currency is bought automatically once a particular rate specified by you is reached, even if only for a few seconds, which avoids attractive rates being missed in a volatile market place.
Australian Dollar sellers can do the same, and I can outline the various options open to you which allow you to ride any of the expected favourable movements to their peak within the time period you have to complete your currency exchange.