Clients with sterling in the need to buy Australian dollars have had a torrid time of late for a few key reasons. Firstly investor confidence has plummeted in the UK due to the vote on EU membership and consequently the value of the pound has followed suit.
Secondly Governor of the Bank of England Mark Carney has tried to combat the UK from entering a recession by cutting interest rates from 0.5% to 0.25%. Again the pound has lost value however the move has enticed spending which has kept the economy stimulated.
Thirdly New Governor of the Reserve Bank of Australia Philip Lowe has made it clear that cutting interest rates could make the housing bubble in the major cities of Australia worse therefore he is reluctant to cut rates unless he has no alternative. With interest rates presently at 1.5% investors are ploughing into the Australian dollar due to the high returns.
This week the RBA and BoE will release their latest interest rates (RBA Tuesday morning BoE Thursday afternoon.) The chance of the RBA cutting rates is very unlikely were as a cut in the UK I believe is 50-50. Therefore I predict Australian dollar strength and sterling weakness this week and I suggest Australian dollar buyers purchase their currency early in the week.
The currency company I work for has been trading for 17 years and consequently I have access to the very best exchange rates on the market.
If you are trading GBPAUD this week, month or year I would recommend emailing me with the the reason for the transfer (company goods, property purchase) and your timescales and I will response with 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, I would strongly recommend you compare rates as I am confident I will be able to offer you additional savings with your transfer. All you need to do is 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! **