The pound has just crashed by 1% against the Australian dollar following a statement from Mark Carney the Bank of England Governor. Mark Carney has made clear that some monetary policy easing will now be required over the Summer. This in reality was probably expected to happen but the pace of which the announcement was made appears to have surprised the markets which has resulted in a very sharp fall across the board. The suggestion is that we will most likely see an interest rate cut in either July or August. Most had been betting on August although such strong guidance at this stage could suggest July which would be next week at the Bank of England meeting on Thursday.
For anyone selling Australian dollars there is currently an excellent opportunity to sell. My view is that the pound will most likely weaken further especially in light of today’s volatility and Mark Carney’s comments. However the mood in Britain has actually been much more positive over the last two days and the reality is that there will be a deal made between Britain and the EU which will all be open to negotiation.
This potential EU deal is already looking likely the most likely outcome and is actually helping support the pound. Economic data is light in Australia as we end the week so as far as GBP AUD is concerned it will be largely driven by British politics and to some extent those of the EU.
If you have an upcoming GBP or AUD currency requirement either buying or selling and would like to be kept up to date with key market movements, or simply wish to compare our award winning exchange rates then please feel free to contact me on 0044 1494 787 478 and ask one of the team for James. Alternatively you can email me directly at email@example.com