GBP Remains Under Pressure (Matthew Vassallo)

AUDGBP: Australian Dollar Weakens in Worst COVID-19 Day Yet

GBP/AUD rates recovered slightly during today’s trading but the general trend has been in line with other currency pairs. Sterling is struggling against a wave of negative feeling and with the markets still trying to come to terms with the UK’s recent decision to leave the EU, I do not anticipate a shift in market perception under current conditions. The Pound has suffered due to a lack of investor confidence and as the table above shows, we have seen Sterling lose a considerable amount of value over the past month.

With GBP/AUD rates now sitting close to a two-and-a-half-year low, those clients holding AUD have a perfect opportunity to secure any short-term positons. With the Australian economy still showing signs of fragility and concern over the current growth forecasts and rising unemployment in China, we may find that these levels do not last for long. I still feel that longer-term Sterling is likely to find support and based on recent history the AUD has a lot of downside risk, another reason it may be prudent to protect any AUD positions rather than gamble on another major spike.

We also need to consider the political situation in Australia, which is also remains very uncertain. Whilst it looks like there will be a hung parliament, votes from around the country are still being counted and any uncertainty surrounding who will be in power and what future policies they may implement could have a detrimental effect on the AUD’s value.

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 mtv@currencies.co.uk