GBP/AUD rates have levelled out during Monday’s trading following last week’s Sterling strength. With a move through 2 last week it seemed as though the Pound may gather further momentum but the AUD has found support today, with the pair now moving back towards 2 by close of European trading.
The reason for last week’s GBP spike can be attributed to a couple of different factors but it was the most recent poll regarding next month’s EU referendum, that seemed to act as the catalyst. The poll indicated that we are now more likely to remain part of the EU and this immediately brought some market confidence back to the Pound. When you consider the general downturn in the Australian economy, it is no real surprise to see GBP/AUD drop but the key question now is whether this trend will continue to push Sterling’s value up, or is the upcoming referendum and in consistent UK data going to halt the Pound’s rise?
Personally I think the Pound would struggle to remain above 2 purely based on the current economic climate inside the UK but it is the problems in Australia which seem to be dragging the AUD’s value down. If this continues then we may find rates move settle between 2.05-2.10 over the coming days, assuming we hear no further reports that an Out vote is gaining support in the build-up to next month’s vote.
Personally I feel there is too much uncertainty in the market to gamble on any major Sterling improvement and with the markets moving simply off media reports than hard data, I would be tempted to secure any GBP/AUD position ahead of next months referendum.
If you have an upcoming GBP or AUD currency requirement and would like to be kept up to date with all the latest market movements, or simply wish to compare our award winning exchange rates with your current provider, then please feel free to contact me on 0044 1494 787 478 and ask one of my team for Matt. Alternatively, I can be emailed directly on [email protected]