The pound has slipped against the Australian dollar this afternoon and also against most of the other major currencies. Today was important with the release of UK Gross Domestic Product figures which have been eagerly awaited in this post Brexit period. The official numbers represent the first output data for Britain since the referendum for Britain to withdraw from the European Union and there has been a huge amount of interest in them
UK GDP arrived better than forecast at 0.5% against expectation of just 0.3% which is a good outcome for Britain. This would normally have resulted in a big jump higher in the price of sterling but instead there was only a small jump higher but was short lived falling by over a cent against the Aussie in afternoon trade. The decision by Nissan to build the next model of cars at the Sunderland plant in Britain should have also been a big boost for sterling but was shrugged off with overriding Brexit concerns.
For clients selling Australian dollars it continues to be an excellent time to convert into pounds. The pound is likely to strengthen going forward although admittedly this may take some time before this happens whilst Brexit unfolds itself.
Data is light for Australia and the UK as we end the week but in these markets anything can really happen on the political side of things. There is so much political news coming out on a daily basis which is having a direct impact on GBP AUD.
Clients who are buying Australian dollars continue to feel the pinch and the outlook is not set to get better in the short term. If you have an upcoming AUD currency requirement either buying or selling and would like to be kept up to date with all the latest market movements, or simply wish to compare our award winning exchange rates with your current provider, then please feel free to contact me on 0044 1494 787 478 and ask one of the team for James. Alternatively, I can be emailed directly on [email protected]