GBP/AUD rates have slipped rather alarmingly over the past couple of weeks, with the pair now floating around 1.95 on the exchange. This move was instigated by better than expected Gross Domestic Product (GDP) figures, along with increased uncertainty surrounding a UK Brexit ahead the upcoming referendum on June 23rd. This has dragged the Pound’s value down and it is for this reason we have seen the slippage, not any overriding confidence in the Australian economy, which is also finding life tough going.
Whatever the result of the referendum the markets will have to factor in future policies and possible pitfalls and with so much uncertainty attached to the UK leaving the EU, this result is likely to cause extreme volatility and panic for investors. Whilst Sterling would likely take an immediate hit, the knock on effect should also be considered. The markets would have to re-evaluate their entire blueprint, and start to consider a scenario they will not ever really have considered or planned for. The current set up is far from perfect but investors are viewing it as better the devil you know and I have no doubt the Pound will struggle to gain any sustainable support for many months to come.
Looking outside of the referendum and we still have economic data which needs to be considered. It was interesting to note that the Pound gained little support this week, despite better than expected Manufacturing & Production figures. We also had the latest NIESR UK Gross Domestic Product (GDP) estimate, which predicted a slight improvement on previous of 0.5% growth. Despite these showing g a more positive outlook for the UK, they did little to boost the Pound, which continues to find life tough going ahead of the most important vote this countries seen for 50 years on June 23rd.
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 protected]