Sterling vs the Australian Dollar has hit its highest level to buy Australian Dollars in 4 weeks following the UK high court ruling which means Prime Minister Theresa May will need parliamentary approval before Article 50 can be triggered.
The previous announcement made back in early October by Theresa Mary that Article 50 will be triggered in March 2017 caused the Pound to hit 3 year lows vs the Australian Dollar but Thursday’s ruling caused a big recovery for Sterling exchange rates across the board.
The Bank of England also confirmed on Thursday that interest rates will remain on hold at 0.25% with a 9-0 majority vote. This also helped to improve Sterling vs the AUD as investors were concerned that the central bank may have an appetite to cut rates for the second time this year.
Next week the biggest news will come from the US when Clinton and Trump head for the polls. This is likely to cause a huge amount of volatility for GBPAUD rates as if Clinton wins this could mean that the US Federal Reserve may increase interest rates in December which could cause Australian Dollar weakness and if Trump gets in this could make financial markets extremely volatile.
If you’re concerned about what may happen to GBPAUD rates in the near future but don’t have the full amount of funds available just yet then it may be worth looking at buying a forward contract which allows you to fix an exchange rate for a future date. This can be particularly useful in avoiding the risks associated with next week’s US election.
Having worked in the foreign exchange industry since 2003 I am confident not only of offering you better exchange rates when buying or selling Australian Dollars compared to using your own bank but also help you with the timing of your transfer.
If you have a currency transfer to make and would like further information or a free quote then contact me directly and I look forward to hearing from you.
Tom Holian [email protected]
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