The cost of buying Australian Dollars have been getting more and more expensive with the pound this year – in fact the negative trend we have been seeing since the middle of last year is very clear to see. I have many clients who were originally waiting for rates to recover back to 2.20, then 2.10, then 2.0 and now 1.95 and I think they will continue to be disappointed. The forecast for GBPAUD is very strong to suggest that we will continue to see rates fall further through the next 3 months.
- China data has bottomed out and is no longer surprising markets, it seems anything negative for china has a much smaller impact on GBPAUD than anything positive
- The forecast for a hike in the US with their Interest rate decisions later this year seems to be getting stronger – adding demand for the AUD pushing up its volume and making it more expensive to buy
- Australian data is also showing improvements – again strengthening the AUD
- PLUS, Lastly, UK uncertainty about the BREXIT moving forward continues to have a large impact weakening the pound
Again if you think that rates for GBPAUD levels will climb over 2.0 again in the near future you have to have a very strong argument as you are in the minority.
This morning we have already had news from the UK with the latest UK Budget which again did not help. GBPAUD rates have fallen already today and I expect a further fall this evening.
This evening we have an update form the US this evening on their interest rate policy moving forward, expected to make GBPAUD more expensive.
Personally I expect to see GBPAUD rates below 1.85 centrally before we see it over 1.95 again.
I strongly recommend that anyone with a AUSTRALIAN DOLLAR buying requirement should contact me on 0044-1494 787 478 and ask the reception team for Steve in order to discuss a strategy for your transfer in order to maximise your Euro return. Alternatively email myself at [email protected] if you would like such information.