Why has the Pound been gaining?
Those holding British Pound’s and waiting for the right time to convert them into Aussie Dollars have been dealt a favourable hand recently, as over the past month and particularly over the past week the currency has gone from strength to strength.
The impetus driving these gains have been 3 key economic news releases in the UK which anyone with a Sterling based currency requirement should be aware of. Surveys carried out by renowned economic data company, Markit, have shown that business confidence in the UK has shown a dramatic turnaround in the space of a month, demonstrating that the UK economy isn’t performing in the terrible fashion we were warned it would.
Whilst confidence in the construction sector beat estimates the improvement in manufacturing conditions has improved by the biggest level in 25 years, whilst the services sector posted it’s biggest gain on record. The improvement in sentiment towards the services sector is perhaps the most significant as the sector makes up over two thirds of the UK economy.
How does this effect my currency exchange?
I think those planning on converting their Pounds for Aussie Dollars will need to put last years exchange rates to the back of their minds I personally I cannot foresee the exchange rates hitting the 2.00 level for some considerable time. The 7 cent gain for the Pound may well be worth taking advantage of, particularly on larger deals as a return to disappointing data could see the Pounds gains scuppered quickly, investors are likely to react quickly to negative news out of the UK due to it’s new trading conditions and planned removal from the EU, as it’s a move financial markets were originally hoping wouldn’t happen.
Why get in contact?
Our specialist currency brokerage offers award winning exchange rates and I’ll be happy to compare our rates with your banks or current providers. We’re here to undercut their rates but our service goes further than that, as we’re also here to help you with the timings of your trades. If you would like a quote or to discuss a planned currency requirement feel free to contact me (Joseph) on [email protected] with an outline of your plans. I’m one of the senior currency brokers at a regulated UK based currency brokerage that has been around for almost 17 years.