Sterling exchange rates have rallied higher again today against all of the major currencies including the Australian dollar with rates back over 1.67 for GBP AUD. UK retail sales number came in stronger than expected and were bolstered by Halloween and the colder weather. Retail sales for October jumped 1.9% from September creating a good spike for the pound.
After the sharp fall in the price of the pound against all of the major currencies on Tuesday the pound has recovered nearly all of that lost ground. The supposed leaked government report turned out to be nothing credible at all and came from a private accountancy firm. This confirmation from government has also helped see the pound rally higher.
Data is light for the both the UK and Australia as we end the week so British politics is likely to continue to dominate the markets. Any news Brexit related is having an immediate and direct impact on the price of sterling so expect more volatility to come as the days and weeks unfold.
Eyes now look forward to a raft of US economic data next week which will give some idea as to how well the US economy is performing. What happens in the US is very topical for the Australian dollar as the currency is impacted by events in the US. We are expecting another interest rate hike in the US imminently and my view remains we will most likely still see that hike in December. This is good news for the US dollar but bad news for the Australian dollar.
Those clients who need to sell Australian dollars would be wise to consider moving before the December meeting in 3 weeks’ time. Those clients who are buying Australian dollars could see a win opportunity after the Fed meeting if Janet Yellen does finally raise interest rates.
Clients who are holding sterling are finally seeing some better times after all the Brexit uncertainty. There may be a little bit further to go for the pound although there will inevitably be more problems to come in the form of Brexit.
If you have an upcoming currency requirement either buying or selling and would like to be kept up to date with all the latest market movements, or simply wish to compare our award winning exchange rates with your current provider, then please feel free to contact me on 0044 1494 787 478 and ask one of the team for James. Alternatively, I can be emailed directly on [email protected]