The result of the UK’s EU Referendum last Friday shocked the world and caused heavy selling off of risk-correlated assets such as stocks and certain currencies such as the Pound which has been weakened substantially.
Now that the initial shock has subsided and an element of risk taking has returned to markets, I think we can expect to see a new trading range established between GBP and AUD as I anticipate the Aussie Dollar to hold it’s ground due to the improved attitude to risk from investors, and the Aussie Dollars status as a commodity based currency.
From this point onward I expect the rate of GBP/AUD to remain in the low 1.80’s and gradually make it’s way upwards until further major announcements are released regarding the UK’s future moving forward, but at the same time there could be developments down under that could swing GBP/AUD exchange rates dramatically once again.
Some economies may look to protect themselves from a global slowdown due to what’s happening in Europe, and one of the methods of doing this would be to cut Interest Rates. The last time Australia cut it’s Interest Rate GBP jumped 10 cents against the Aussie so another rate could could see a similar effect although I wouldn’t expect the jump to be quite so substantial, although it would bring GBP/AUD back closer to the 2.00 levels they have fallen from. It may be an idea for Aussie sellers to take advantage of the recent move that favours them considerably, in case these levels aren’t available for much longer.
Feel free to get in contact with me (Joe Wright) on [email protected] if you wish to discuss a GBP and AUD currency exchange you’re due to make. I can help you make a well informed decision on when to make that transfer, as well as offering you highly competitive exchange rates from one of the UK’s leading foreign currency brokerages. Just provide me with a basic outline of your currency requirement and I will be back in touch with you as soon as possible.