Buying Australian Dollar rates have seen a marked improvement recently thanks to events over in the US, however, with the UK’s Autumn Statement next week.
Initially the timeline for the next US interest rate hike sat squarely in December, and Trump’s heavy support for such a hike makes the occurrence even more likely. One of the most attractive features of the Australian Dollar is its high interest return compared to other currencies, sitting at 1.5% compared to 0.25% in the UK and 0.5% in the US.
As such, any hike in the US interest rate will give another option for investors hoping for higher returns on their capital but who are not willing to gamble on slightly higher returns of a currency proven to be unable to hold its value for a consistent period. Capital is being moved into the US Dollar ahead of time as financial speculators gamble on the result, and the resulting lower demand for the Australian Dollar has made it a cheaper prospect.
Yet Friday trading continues to be a feature which haunts the Pound and anyone considering buying AUD.
On Friday afternoons the actors who regularly move capital large enough to shift the currency markets, high street traders, have to decide which currency to allocate their capital into to end the week. The Pound, despite the recent improvements, is anything but stable, and is regularly at the bottom of this list during this period. This is why the Pound has consistently lost value during this period due to decreased demand.
However, we will likely some improvements to begin the week as markets return to normal.
The Pound’s inability to bridge key resistance levels means that remaining an informed position and being able to move quite quickly would be a valuable thing indeed. To compliment this a limit order is a popular option which I offer my customers to automatically buy your currency once a particular level is reached to avoid missing any opportunities.
To discuss a strategy for your transfer, to explore current forecasts on buying or selling Euro rates in more detail, and to answer any questions you may have about the benefits of using a currency broker to assist in your transfer, you can contact me over the weekend whilst markets are closed on [email protected]
You can also fill out the form below and I will be in contact as soon as I am able to.
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