GBP/AUD buying rates have seen some characteristic volatility to begin the morning, with most of the heavier movements expected later this afternoon or early evening as we edge closer to the Bank of England interest rate decision today.
The UK has struggled recently, with very low business confidence data to end July, and once more it seems more likely than not that a cut with will take place, and the Pound will come under sudden and further pressure.
However, markets had similar expectations last month.
At the last minute this was averted with the news of a new Prime Minister and new government, giving some stability back to the UK and making an extreme measure such as a rate cut less of a necessity in the short-term.
However, we’ve had similar positive news for the UK recently. European Bank stress tests showed that most UK high street institutions, apart from RBS, were well equipped to weather a recession should this be hit. Whilst this is not enough to show long-term confidence in the UK, it may be enough for the Bank of England to wait until September before taking such a plunge.
Previously the likes of Deutsche Bank and HSBC priced in an 80% likelihood of a cut, they have since stated they have tempered their expectations. As such if you hoping on a rate cut in the UK to improve your situation, or indeed for rates to be kept on hold if you are planning to buy Australian Dollars, then this is a gamble either way.
In these situations it is best to be in a position to move quite quickly, or to avoid risk entirely and move ahead of time. You can contact me ahead of the news tomorrow to discuss how best to approach the next 24 hours by calling +44 1494 787 478 and ask the reception team for Joshua.
I have never had an issue beating the rates of exchange offered elsewhere, and these current buying levels can be fixed in place for anyone planning a foreign currency transfer in the near future and are worried that selling or buying Australian Dollar rates may drop in the near future. [email protected]