Friday had all the hallmarks of a stable day on the currency markets until the late afternoon, when buying Australian Dollar rates suddenly tumbled.
The Pound almost instantaneously took a serious hit against all of its major pairings. Buying Australian Dollar rates fell comfortably below 1.70, to their lowest levels since 2013 at one point.
The silver lining for anyone with an upcoming GBP/AUD requirement is that not only was this fall halted late on Friday by the close of the currency markets for the weekend, but this trend is also likely to be reversed as we enter the beginning of the new trading week.
In these situations it is important to always be aware that it is speculators who goven buying and selling Australian Dollar exchange rates.
Traders who move tens and hundreds of millions each day are the drivers of the currency markets and changes of exchange rates, and on Fridays you tend to witness the phenomenon of profit taking. These same speculative traders who had been active all week have to choose a dominant currency to store their profits into as the week concludes. Due to the instability and weakness of the Pound in this post-Brexit vote atmosphere, the Pound is in very low demand during this period. So its value becomes pressurised accordingly.
However, with Monday will become some return to normality. Traditional market dynamics dictate that when markets re-open, this artificial weakness for the Pound will be corrected as the market soaks up the readily available and cheap Sterling.
However, the world goes on, and Tuesday should be seen as a red flag for any Australian Dollar buyers, as inflation data for the UK economy will be released and this has been a regularly underwhelming time for the value of the Pound over the last 12 months.
Monday, therefore, may present some tempting opportunities ahead of what is expected to be a difficult day for the Pound.
I strongly recommend that anyone with an Australian Dollar buying requirement should contact me on [email protected] to discuss how best to take full advantage of any tempting opportunities which emerge.
You can also fill out the form below to be immediately contacted at the opening of currency markets on Monday to discuss how best to make the most of the day’s movements.
Any profitable opportunities which emerge can also be immediately fixed in place for any planned future transfers. So a brief conversation to plan for your future could save you thousands on your transfer. I have never had an issue beating the rates of exchange offered elsewhere.
Australian Dollar sellers can also get in contact to discuss how best to maximise your Pound return within the timeframe you have to complete your transfer.
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