Article 50 to be invoked by the End of March
Theresa May announced on Sunday that Article 50 would be triggered before the end of March. This will begin the two year process of Britain’s withdrawal from the EU. Sterling plummeted in value against the majority of major currency with GBP/AUD falling into the 1.66s at one point.
There could be further falls for the pound as it is predicted further negative data will filter through post-brexit vote. Another factor which could have impact is the high value of the Australian Dollar. Australia is heavily reliant on raw material export to China and if the Aussie is too expensive it may cause the Chinese to look elsewhere. The Reserve Bank of Australia (RBA) have already cut interest rates recently and it failed to have the desired impact. Philip Lowe the newly appointed Governor of the RBA will have to have his jawboning technique on point in order to influence GBP/AUD exchange rates. It will be a difficult task to artificially weaken the Australian Dollar.
Despite my prediction of a relative negative trend for Sterling against the Aussie. The market never moves in straight lines and an opportunity may well present itself for Aussie buyers, which is why it is crucial to be in touch with an experienced broker to assist in timing your trade. I will happily provide a individual trading strategy taking into account your time scale on the transfer. If you would like me to assist I can be contacted directly at [email protected].