GBP/AUD rates have fallen during early morning trading, as the markets wait for the release of the latest UK Gross Domestic Product (GDP) figures.
With little economic data out for Australia this week, investors focus has been on the UK and this morning’s release is one of the most important of the month, so expect increased movement on GBP/AUD rates as we head into the weekend.
Sterling has performed well against its AUD counterpart for most of the week and Wednesday’s Autumn budget seemed to bring further confidence back to the UK economy and ultimately the Pound, despite Chancellor’s Philp Hammond’s messages being mixed at best. Despite a commitment to increase spending on housing and digital infrastructure, debt was expected to rise to £122bn in the lead up to 2021.
If these figures are correct then the UK economy is likely to remain under serious pressure over the coming years and as such any on-going Sterling strength against the AUD may be unsustainable.
GBP/AUD rates were creeping closer to 1.70 but after this morning’s drop the pair are now trading under 1.67. This is still extremely attractive levels for those clients selling AUD considering the recent history on the pair but with the Pound gaining a foothold around 1.60, is now the time to sell your AUD positions?
Personally, I would look to remove the uncertainty which has engulfed the current market and with future rate movement proving very difficult to predict due to the UK’s upcoming Brexit, why gamble when you could take advantage of some of the best rates seen over the past five years.
If you have an upcoming GBP or AUD currency exchange to make and you are concerned by the increased market volatility of late, it may be wise to look at protecting the gains you’ve made, or limiting your losses with one of our forward contracts, rather than gamble on what has become an increasingly volatile and unpredictable market.
If you would like to be kept up to date with all the latest market movements ahead of your currency exchange, 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 Matt. Alternatively, I can be emailed directly on [email protected]