GBP/AUD rates have been on the slide for the past month and despite it not being all one way traffic, the Pound is certainly feeling the strain ahead of next week’s EU referendum vote. We did see a slight recovery yesterday following better than expected unemployment data but I do expect this positive trend to continue, so any clients holding Sterling may want to consider their options and protect themselves ahead of such a key political & economic decision.
UK unemployment data came in at 5% but despite this improvement investors remain extremely cautious regarding the UK economy at present and this is being reflected in the value of GBP. With the latest referendum polls indicating that the Leave camp are now neck and neck with the Remain camp and one even had them ahead, it is likely this uncertainty will continue to build over the coming days. Whilst pre-polls are often fabricated and should be largely ignored, the term no smoke without fire comes to mind. There certainly seems to be a level of support growing and whether this is enough to force an Out vote only time will tell.
Whilst all discussions seem to be centred around the referendum, we do still have some key economic data releases to watch out for over the coming days. Today’s Bank of England (BoE) interest rate decision and subsequent monetary policy statement that is likely to hold most weight, as any indication of how a Brexit may affect future policies could cause an aggressive market reaction. We also have a host of employment data for Australia overnight and if we see anything outside of the expected reading of 5.7%, then expect increased volatility on AUD exchange rates.
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 the team for Matt. Alternatively, I can be emailed directly on email@example.com