Earlier this week the GBP/AUD exchange rate hit 1.6603 as the Sterling sell off has picked up significant steam over the past 3 trading sessions.
We’re witnessing a historic week for Sterling exchange rates across the board as the currency has fallen to fresh post-brexit-vote lows against a number of major currency pairs this week, with many of those lows being fresh 3-5 year low points for the Pound value, and in GBP/USD’s case, a 31 year low.
The catalyst for this aggressive sell off has been the UK Prime Minister, Theresa May’s comments over the weekend at the conservative conference where she announced that Article 50 will be invoked in March of next year. Whilst not coming entirely as a shock to currency markets as Boris Johnson had previously implied that this would be the case, May confirming these suggestions has really put pressure on the Pound as many were hoping for a ‘Soft Brexit’ whereby prolonged negotiations and delaying Article 50 would allow the UK to retain access to the EU’s single market, although that’s not going to be the case.
Sentiment is highly likely to continue to drive this particular pair but a further interest rate cut from either the Bank of England of the Reserve Bank of Australia will likely weaken the underlying countries currency.
Tomorrow there will be GDP figures released out of the UK which could create movement within exchange rates, particularly downward movement for the Pound if the figure is released below its expectation of 0.3%.
If you have an upcoming currency requirement which involves exchanging the Pound for another currency suck as the AUD, it may be an idea to remove the risk of further falls if you’re working to a budget or timescale, as many analysts are expecting further falls for the Pound.
If you want to be kept up to date on the markets and you would also like to ensure that you are getting the very top levels of exchange for an imminent currency transfer or even a longer term one then I can help you with this.
Not only do we give clients up to date market information but we all work for one of the largest and longest serving currency brokerages in the U.K, so even if you have dealt with your current broker or bank for a long time I would be surprised if I could not show you a saving over what they are offering you – You can email me (Joseph Wright) directly on [email protected] and I will be more than happy to contact you personally to discuss the various options we have available to you.