The Pound has continued to make gains vs the Australian Dollar during the last fortnight as it seems we may have seen the sentiment in Sterling become a little more positive.
UK retail sales kicked off the recovery and combined with positive consumer confidence data as well as UK GDP data staying strong at 0.6% on Friday morning it appears as though the knock on effect from the Brexit has not been too bad.
Many analysts were expecting the Brexit to have a huge negative effect on the British economy owing to the uncertainty created by the vote to leave the European Union but this has not been the case.
The economic data that has been released has generally shown that the UK economy has been resilient and this is why we have seen the positive gains made by the Pound vs the Australian Dollar.
Yesterday evening US Fed Chairlady hinted that the US economy is now extremely strong and this could mean another US interest rate hike coming before the end of 2016.
If the US do hike interest rates then this could mean a weakening of the Australian Dollar vs the Pound as global investors are likely to sell their AUD in favour of the yields available in the US.
Although the US interest rates will still be lower than that offered by the Australian interest rate with the world’s leading economy showing very positive signs then it makes sense for a global investor to have money in the US rather than in Australian Dollars.
If you have Australian Dollars to sell to buy Pounds then it may be worth moving sooner rather than later in order to avoid the markets continuing to move in Sterling’s favour.
If you don’t have the full availability of funds then it may be worth looking at buying a forward contract which allows you secure an exchange rate in advance for a small deposit.
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 protected]
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