Sterling has endured a dreadful week compounded by Thursday’s overnight trading session which saw GBPAUD rates fall to their lowest level to buy Australian Dollars in 3 years.
Suggestions are that an algorithm in Asian trading which looks for negative Brexit news triggered a huge sell off for Sterling following a statement by French president Francois Hollande and this sent the Pound into free fall against all major currencies including the Australian Dollar.
The Pound is clearly being driven by political factors and the uncertainty of what will happen with the UK’s relationship with the European Union. Since the announcement by Prime Minister Theresa May that the UK will trigger Article 50 in March 2017 this has caused the Pound to fall against the Australian Dollar as investors are still not sure whether the UK will opt for a ‘hard’ or a ‘soft’ Brexit.
Until we have a clearer picture as to what will happen next with the negotiations I think the lack of a clear route to leave the EU could see GBPAUD rates fall even further.
With the Bank of England also considering cutting interest rates before the end of the year Sterling is looking vulnerable at the moment which is creating some excellent opportunities to sell Australian Dollars to buy Sterling.
If you’re in the process of moving to Australia or thinking of sending money down under before the end of the year it may be worth looking at buying a forward contract which allows you to fix an exchange rate for a future date.
Having worked in the foreign exchange market since 2003 I am confident of not only offering you competitive exchange rates but also helping you with the timing of your transfer.
To find out more or for a free quote then contact me directly by email and I look forward to hearing from you. Tom Holian [email protected]
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