GBPAUD was over 2 only a few weeks ago when the pound was very strong and there was a strong chance of a Remain vote. Now we are faced with rates a lot closet to 1.90 as the markets braces itself for the EU vote next week! What can we expect in such an uncertain market? It is very difficult to tell but swings of up to ten cents cannot be taken for granted. I would expect the pound to slip by up to 15 cents on a Leave vote whilst rising around ten cents on a Remain vote. The greater risk seems to be the worry that the UK will Leave, most reporters and commentators of the Brexit debate still think the Remain will win.
The rates on GBPAUD have been very volatile and personally I would not want to take any great risks. If you need to make any transfers in the future I would be very concerned about just what is going to happen. The biggest risk in the current market is to do nothing and just hope exchange rates magically go in your favour! If we look at the current trends on the foreign exchange market swings over the course of the days have been around 1-3 cents on GBPAUD. If you need to look at any exchanges and wish for some information on what to do please speak to me Jonathan by emailing [email protected]