GBP/AUD rates have recovered slightly during Tuesday’s trading, with the pair heading back above 1.80 by close of European trading. It’s been an extremely unsettling few days for many of our clients and I’m sure investors alike, with a huge decrease in Sterling’s value following last week’s disastrous Brexit result. Regardless of personal opinion it is clear the decision to leave the EU has caused huge problems for the UK economy and the Pound is suffering as a result.
The initial market reaction was one of shock and surprise and the Pound lost ground immediately. The swing we’ve seen on GBP/AUD over the past couple of weeks is in the region of 20 cents and this is of huge significance to clients who are looking to buy or sell large AUD positions. Sterling’s negative move can be attributed to the Brexit but it was also facilitated by an upturn in the Australian and maybe even more importantly the Chinese economy.
Looking ahead and I do not expect the current trend to continue at the same pace but with so much pressure on the UK economy and the uncertainty surrounding the current political situation, any sustainable improvement for the Pound is unlikely under current market conditions. I would be looking to protect myself against a further downturn and not gamble on what has become the most unusual and unpredictable market I personally have ever witnessed.
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]