Sterling has continued to weaken against all major currencies since the Brexit and in particular we have seen Sterling drop to its lowest level to buy Australian Dollars since November 2013.
Even in light of the RBA cutting interest rates last week this has done nothing to weaken the Australian Dollar as the pressure continues to increase on the value of Sterling.
The Bank of England cut interest rates for the first time since 2009 to their lowest rate in history at just 0.25% and this has caused Sterling to lose value.
Even with Australian interest rates having been cut they are still more attractive than over here in the UK.
The increase of Quantitative Easing has also caused investor confidence to fall in the UK and with consumer confidence at its lowest level since 1990 things are not looking good for Sterling exchange rates.
The Interbank level has fallen below 1.70 as predicted in my previous article and we could potentially see further losses for Sterling to come.
The positive news that keeps coming out from the US is also keeping commodity based currencies very strong and with the US potentially looking at increasing interest rates at some point this could also help the Australian Dollar.
On Tuesday the Reserve Bank of Australia releases the minutes from their latest meeting and this will be closely followed by unemployment data released on Thursday.
Any signs of further Australian interest rate cuts or a slowdown in the jobs market could see a reversal of the recent trend of Australian Dollar strength so if you’re looking to convert Australian Dollars into Sterling now could be seen as a good window of opportunity.
If you have a currency transfer to make and want to save money on exchange rates compared to using your own bank then contact me directly for a free quote. Tom Holian email@example.com
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