Sterling sellers have benefited from a recent surge in the value of the currency, with GBPAUD levels now closer to 1.90 than 1.80 as I predicted last week on this blog, the link can be found here http://www.australiandollarforecast.com/2016/04/21/4577/
Interestingly, the previous resistance of 1.8600 gave little of a fightback, and now we have a central level of 1.8850. Personally I think this is an indication that we are witnessing Sterling make a turnaround for a number of reasons which I’ll come onto in a moment, and I think we should now take the claims of the Aussie Dollar being overvalued seriously.
Sterling has climbed against AUD as well as all other major currencies over the past week, and this has predominantly been down to improved sentiment towards the UK politically and economically, as world leaders such as US President Barack Obama, IMF Managing Director Christine Lagarde and the Governor of the Bank of England, Mark Carney have all offered their support to the ‘Remain’ campaign and highlighted the risks towards the UK moving forward should the public opt to leave.
As the polls covering the anticipated vote point to a ‘Remain’ lead, the political uncertainty surrounding the UK is weakening and this has been reflected in the strengthening Pound.
I would think that those looking to convert Australian Dollars into Pounds should consider doing so sooner as opposed to later as GBP has fallen a great deal since the beginning of the year, and the chance to take advantage of that drop is still available although for how long remains to be seen.
Additionally, those looking to convert Sterling into Australian Dollars may wish to watch the rates closely or at least get in contact with us and ask for us to monitor the rates for them, as this may be the beginning of a turnaround for Sterling but at the same time, should the polls suddenly change, it’s likely that Sterling’s fortunes will as well.
If you are considering making a currency conversion involving the pairs I’ve written about today, it’s worth your time getting in contact with me either by telephone on 01494 787 478 or by email through [email protected] as I work for one of the UK’s longest standing specialist foreign exchange brokerages. We offer rates of exchange that are far better than those of a high street bank, and provide a straight forward, regulated service of our clients.