Sterling vs the Australian Dollar has seen its biggest gains in weeks as the Pound ended the week on a high against all its major currency pairs.
Inflation has started to rise in the UK and with the Brexit fears having put GBPAUD rates on the back foot in recent weeks then this week’s change in sentiment has helped to provide the Pound with some solid gains.
President Obama, the ECB and the Bank of England governor Mark Carney have all spoken out in favour of the UK remaining in the European Union and with such support it seems difficult to see the UK not remaining in the EU when the vote takes place 2 months from today.
However, we are still in a period of uncertainty and until we have the conclusive results then expect GBPAUD rates to remain uncertain.
Over the next fortnight Malcolm Turnbull will announce his next budget and with an election likely to be called by early July then we could also see the Australian Dollar struggle to remain at these levels.
In Japan they are considering cutting interest rates as well as adding more Quantitative Easing.
The effect this has on the Australian Dollar could be negative as it shows one of the world’s strongest economy struggling and therefore this decreases investor appetite in riskier currencies including the Australian Dollar.
Therefore, we could see GBPAUD rates move in an upwards direction when the Bank of Japan meets on 27-28th April.
With ANZAC day being celebrated on Monday I wish all my regular readers a pleasant day off if you’re not working.
Having worked in the currency markets for 13 years I’m confident of not only offering you better exchange rates but also help you with the timings.
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]