The pound has seen an excellent rally against the Australian dollar for the second day running following the US Presidential election win by Donald Trump just yesterday. The pound has made rapid and substantial gains in a very short period of time against all of the major currencies including the Aussie dollar with rates having broken over 1.65 for GBP AUD. It should not be understated how much the pound is rallying at present. Those clients who need to sell Australian dollars would be very wise to consider moving sooner rather than later and take advantage of the current excellent levels.
Why is the pound strengthening so much all of a sudden?
Sterling has found a new wave of support following the US election. The pound seems to have found favour in my view due to some of the similarities between Brexit and the Trump win. Trump has openly expressed his wish to do a trade deal with Britain which is completely different from the stance that President Obama took in his final months as President. UK Prime Minister Theresa May has also maintained a professional line with the US election whereas many European leaders actively promoted Hilary Clinton.
Considering Nigel Farage shared a platform with Donald Trump in the race to the White House and was the only politician to do so would suggest Britain and the US may be able forge a stronger relationship going forward. These are very interesting times an there are many implications from this.
Sterling exchange rates initially saw a rocky start to the day against most major currencies yesterday but good gains were made early on against the Australian dollar. The Australian dollar could see some further weakness going forward as the commodity currencies normally perform worse in times of global and economic and political uncertainty. A weakening in the Aussie is also welcome news for the Reserve Bank of Australia. The Trump win appears to have taken care of that for them.
The Brexit jitters will no doubt keep the pressure on the pound but this Presidential outcome has so far has seen a good win opportunity which is still going strong for those holding pounds. If you 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]