After yesterdays announcement by the European Central Bank GBPAUD exchange rates have been up and down like a yo-yo!
The ECB confirmed at 12.45 they would be cutting interest rates and adding €20bn each month to the Quantitative Easing program.
This led to investors selling off their Euro positions to buy currencies which would generate higher returns on their investments. The Australian Dollar heavily benefited from the sell off and GBPAUD plummeted.
President of the European Central bank surprisingly shocked the market with his bullish comments in the press conference that followed shortly after. Mr Draghi painted a positive picture in regards to the economy as a whole and confirmed the ECB would not need to make further cuts to interest rates.
This led to speculative traders revering their trades and the Pound therefore made back the losses against the Australian Dollar.
With no important economic data releases today GBPAUD has fluctuated between 1.8940 and 1.9168 and I put the movement down to investors constantly moving one currency to another working out the best way to make money on their investments.
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 immanent 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 +0044(0)1494 787 478 and ask for Dayle Littlejohn.