Sterling vs the Australian Dollar has been trading either side of 1.60 on the Interbank level during today’s trading session following the release of Australian inflation data early this morning. The foreign exchange market does not appear to have moved that much owing to the release as the markets are waiting to see what happens when third quarter UK GDP figures are announced tomorrow morning.
The expectation is for 0.3% quarter on quarter and as this is the first period since the Brexit vote this could make for some very big movements depending how the data comes out.
Sterling has remained under huge pressure recently owing to the vote to leave the European Union in June followed by the announcement that Article 50 will be triggered by March 2017.
With the Bank of England due to meet next Thursday to discuss interest rates we could see a further rate cut if the GDP figures come out lower than expected.
The Reserve Bank of Australia are also due to meet next week and I think although there is some pressure for them to cut rates I don’t think this will happen just yet. Indeed, new governor Philip Lowe has been rather bullish about the economy since taking over from Glenn Stevens so I think we could see GBPAUD rates fall further going into next week.
If you’re moving down under over the next few weeks or months and are worried about the potential demise of Sterling you may wish to consider buying a forward contract which allows you to fix an exchange rate for a future date.
Having worked in the industry since 2003 I am confident that not only can I help you save money on exchange rates when buying or selling Australian Dollars but also help you with the timing of your transfer.
If you have a currency transfer to make and want to save money on exchange rates compared to using your own bank then contact me directly for further information or for a free quote and I look forward to hearing from you.
Tom Holian [email protected]
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