Since the UK decided to vote out of the EU, GBPAUD exchange rates have dropped from 1.9650 to 1.70 and this has been at a time where the Australian dollar has weakened due to interest rate cuts. Buying 200,000 Australian dollars with the pound now costs you an extra £15,800!
Its been announced that UK Prime Minister plans to introduce a repeal bill in the next queens speech which will overturn the Act that bought the UK and EU together. She has also stated the invoking of Article50 (leaving the EU) will begin in March 2017. In my opinion this is not good news for Australian dollar buyers and I expect this breaking news to impact the pound next week.
As for Australia the Reserve Bank of Australia are set to release their latest interest rate decision and it’s important to note this is the first interest rate decision for the new Governor Philip Lowe.
Throughout Lowe’s press conferences since his appointment he has announced that he wants to look at monetary policy and try to stimulate the Australian economy as much as possible however would prefer to do this by not cutting interest rates. I am confident that the RBA will keep interest rates on hold at 1.5%, which should improve the value of the Australian dollar.
f you are buying or selling Australian Dollars this week, month or year I would recommend emailing me with the currency pair (AUDUSD, AUDGBP, AUDEUR) and the reason for the transfer (company goods, property purchase) and I will response with my forecast and the options available to you [email protected]. Alternatively if you would like to discuss your requirements over the phone call 01494-787478 and ask to be put through to Dayle Littlejohn.
** If you are already using a brokerage and would like to know if you are receiving the best rates possible email me with the exact figures and I will reply with our live price. This will take you a few minutes and in the past I have saved clients thousands! **