Politics continues to be the governing force on buying Australian Dollar rates. Previously the seemingly uninterrupted run towards the enaction of Article 50 in March was pushing GBP/AUD down on the verge of touching below 1.60, yet Thursday’s news has provided another surprise twist in the Brexit storyline.
On Thursday it was ruled that Article 50 could not be enacted without the permission of Parliament voting on the matter. Financial markets have made no secret that they wish for the status quo to remain unchanged. Any delays, or hopeful signs that the UK will remain part of the single market,has provided much needed support for the Pound since the Leave vote.
We saw similar movements on buying Australian Dollar rates when Theresa May calmed markets as soon as taking office as Prime Minister by stating Article 50 would not be enacted until next year. The expectations that the slow process of parliamentary procedure will be enough to stall the formal process of leaving the EU beyond its current March 2017 deadline was enough to the see the Pound bolt upwards against its major counterparts.
Furthermore, we now have the likes of Jeremy Corbyn stating that Labour will block Article 50 unless the Government can guarantee that the UK remains part of the single market.
The story is certainly not over, since the Government is appealing the decision, but hopes are not high given that the court has already ruled against them. This isnt a murder mystery, theres no new evidence which can come to light. This decision is likely to be uphold.
The atmosphere surrounding the Pound has therefore shifted. Markets are more confident of the liklihood of the UK remaining in the single market given the intransigence of many members of Parliament. GBP/AUD is up almost 2% on the news, and unlike previous spikes, seems to be holding its value.
In this currently evolving climate, particularly with the strong impact of the American election on Tuesday rippling through the currency markets in the beginning of the week, a premium will be put on being a well informed purchaser. Being in a position to move quickly alongside the immediate relay of any positive or negative news to inform your decisions is key.
I offer a proactive service to my customers to manage just that, and there are a number of options open to you in order to ensure you are never ‘last to the party’ when positive spikes emerge, and that your transfer, whether in the immediate or even long term, is safeguarded against a sudden downturn.
You can contact me on [email protected] to discuss a strategy for your transfer in order to maximise your Australian Dollar return whilst markets are closed for the weekend. You can also fill our the form below and I will respond as soon as I am able.
[contact-form to=’[email protected]’ subject=’ADF’][contact-field label=’Name’ type=’name’ required=’1’/][contact-field label=’Email’ type=’email’ required=’1’/][contact-field label=’Contact number’ type=’text’/][contact-field label=’Buying or Selling Australian Dollars’ type=’select’ required=’1′ options=’Buying,Selling’/][/contact-form]