The Australian Dollar is now at its best level against Sterling for almost a year following the terrible atrocities in Brussels earlier this week.
This caused global investors to sell both the Euro and the Pound in favour of a higher yielding currency as well as the safe haven of the Australian Dollar.
With Australian interest rates much higher than in both the Eurozone and the UK then I think whilst the tensions continue we could see further Australian Dollar strength vs the Pound.
The fears of a Brexit are continuing to gather pace in the UK with just less than 3 months to go before the UK referendum takes place on 23rd June.
Personally I don’t think the UK will vote to leave the European Union but over the next few months whilst the political landscape remains uncertain this could cause Sterling to fall further than its current levels against the Australian Dollar. Indeed, this is causing foreign investment to decrease in the UK.
Next Thursday is likely to be the biggest day of next week for volatility when the UK releases GDP figures for the fourth quarter of 2015.
The figures will be revised and depending upon which way could cause a big movement for Sterling vs Australian Dollar exchange rates.
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 for a free quote. Tom Holian [email protected]