The quick turnaround in leadership contact, to new Prime Minister, to new Cabinet has improved confidence in the Pound, translating into better GBP/AUD buying rates.
Yet there is a duel effect on the Pound to be wary of today, with the Bank of England interest rate decision coming out at midday, with the potential for a cut likely to put pressure on the Pound as the day wears on.
Theresa May’s appointment of the Cabinet created some roller-coasters last night for buying Australian Dollar exchange rates. Tellingly, the announcement of Boris Johnson as Foreign Secretary caused the Pound to fall quite heavily, with GBP/AUD reaching close to 1.70. This was the first announcement of an outward looking role in the Cabinet, and it went to the most prominent Leave campaigner preceding the Referendum. The Pound likely suffered due to fears that a Cabinet stacked with ‘Leavers’ would rush towards a Brexit and unsettle markets.
However, these fears were quickly squashed. The next announcement of David Davis as Secretary of State for Exiting the European Union brought some stability back to the fore. Whilst a Eurosceptic he has publicly stated that his endeavors to leave the EU will be practical and gradual, stating that Article 50 will not be enacted until 2017 at the earliest, and emphasized trade negotiations to begin immediately both with the EU and outside it.
However, today may present some further opportunities for AUD sellers, with financial markets pricing in an 80% likelihood of an interest rate cut, set to put severe pressure on the Pound given that rates have already been at record lows for years. The Australian Dollar will likely benefit off the back of the news through increased demand, as, if the UK decides to cut rates, Australian interest rates will be 7 times higher than that of the UK.
I strongly recommend that anyone with a GBP/AUD buying requirement should contact me on 01494 787 478 and ask the reception team for Joshua to receive a live, competitive quote for your transfer. I have never had an issue beating the rates of exchange offered elsewhere, so a brief phone call could save you thousands on you transfer. The interest rate decision comes out at 12:00 UK time.
AUD sellers can also get in contact to discuss a strategy for your transfer in order to maximise your Sterling return within the time period you have to complete your transfer. [email protected]