With Theresa May appointed as prime minister and a new cabinet in place I think we will see Sterling gradually gain value. There are two events which could put a halt any Sterling rally however. First up, on the 4th August we have the Bank of England’s (BOE) decision on interest rates. There was a high probability of a rate cut at the Monetary Policy Committee’s (MPC) meeting earlier in the month but rates remained at 0.25%. Normlly if a data release goes a against the general consensus there is a big swing on the market. On this occasion there was little movement. This could be due to the strong possibility of a rate cut in August. It is common knowledge this will happen, therefore I would not expect the pound to drop a great deal if a cut does happen. The other event which could cause Sterling to fall in value is if the button is pushed on article 50. Article 50 engages the UK’s exit from the EU, this will cause Sterling to lose value. I would not expect this to occur until early next year.
If you are selling AUD I would be tempted to move at current levels. You are currently at one of the best times to sell the Aussie since September 2014. Three is the chance of a rate cut by the Reserve Bank of Australia on 2nd August which makes it a risky business to hang on for the BOE decision on the 4th. Personally I would be looking to sell AUD ASAP.
If you have a currency requirement it is vital to be in touch with an experienced broker. The timing of your trade is key during such a volatile times, If you have a veteran broker on board he can keep you up to date with what is happening in the market to help you make an informed decision. If you would like me to help with your trade I will be happy to help. Let me know the currency pair you are trading, volume and time scale and I will provide a free trading strategy to suit your needs. I work for one of the top brokerages in the UK and as such I am in a position to beat nearly every competitors rate of exchange. You would be looking at around a 4% saving in comparison to high street banks. Please do get in touch by contacting me at [email protected]uk. Thank you for reading my blog and I look forward to hearing from you.