Earlier this morning the UK released it’s first set of financial data since the shock announcement of the ‘Brexit’ decision.
The news released doesn’t bode well for the UK economy in the short to medium term, or Sterling strength for that matter as PMI figures for both Services and Manufacturing have shown a decline from the previous figures, with both demonstrating a contracting economy with the Manufacturing figures coming out worse than expected by analysts.
I put the declines down to simple uncertainty, with many tentative to put funds into UK business whilst the countries future remains unclear.
Moving forward I expect data such as this mornings new release to continue to weigh on the Pounds value, and I’m not expecting to see Sterling trading above 1.80 once again anytime soon, perhaps not even this year. Sterling sellers hoping to see the levels of 2.00 once again may be waiting for a long time, although a further cut to Australian Interest Rates could push the Pound up comparatively although the UK is also likely to cut interest rates, and that could occur as soon as August the 4th which would likely cancel out any potential gains for the Pound against the Aussie dollar anyway.
For Aussie dollar sellers, it’s hard to tell when the best time to trade will be as we are around 5-6 cents above the lowest level hit this year. For those not looking to take any risks it may be idea to take advantage of what are almost 3 year highs for the Aussie dollar.
If you are planning to use GBP to buy a foreign currency it may well be worth your time getting in contact with me (Joe) on [email protected] in order to ensure you make a well informed decision on when to make that particular transfer, as well as benefiting from 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.