If you trade GBPAUD regularly or are following the markets all of a sudden, because you need to make a one off transfer, the question you should be asking yourself is will GBPAUD rise of fall?
In previous weeks both the Pound and Australian Dollar have weakened, let me tell you why.
The Australian Dollar
- The Chinese stock market continues to plummet
- Iron Ore and Nickle which are important trade materials for Australia have fallen
- Speculation an interest rate cut could occur in the near future
- An Interest rate hike is completely off the cards
- Inflation remains at a worrying low
- Growth forecasts for 2016 have been cut
- Talks of a ‘Brexit’ continue
This week I expect both currencies will weaken once again and this is why:
The Australian Dollar
- The Reserve Bank of Australia minutes from the last interest rate decision are released on Tuesday. I wouldn’t be surprised if the minutes are dovish and hint that a cut in interest rates is just around the corner.
- Global uncertainty and in particular the Chinese stock market could continue to fall weighing down on commodity currencies, the Australian Dollar being one.
- Inflation data is released on Tuesday and I expect the numbers to be released as expected and therefore a non-event or worse than expected and the pound will lose value
- David Cameron will meet EU leaders Thursday and Friday to discuss the proposal the UK government has created in order to remain within the European Union. Talks are expected to raise further eyebrows and consequently a ‘Brexit’ could become more likely once the week is over.
If you are buying or selling Australian Dollars this week, month or year I would recommend getting in touch to put a strategy in place to maximise your trade. In order to protect you against market fluctuations we have different contract options available that will meet your needs and requirements. With the current market conditions I would reccomend using a limit order. This is where you target a rate of exchange, once that rate is achieved we can automatically buy the currency for you which saves you watching the rates 24hours a day!
If you have a currency transfer to make and want to save money on exchange rates compared to using your own bank then contact me directly. Dayle Littlejohn [email protected] or alternatively call 0044 1494 787 478 and ask to be put through to Dayle Littlejohn.
IF YOU WOULD SIMPLY LIKE A COMPARISON AGAINST YOUR CURRENT PROVIDER EMAIL ME WITH THE EXACT FIGURES AND I WILL GIVE YOU OUR LIVE BUYING PRICE AND TOGETHER WE CAN DO A COMPARISON!! THIS TAKES 30 SECONDS AND COULD SAVE YOU THOUSANDS!!