Sterling vs the Australian Dollar is now at it best level since early October following the election in the US which has seen Donald Trump elected as the next President.
This has caused risks to global markets and as the Australian Dollar is deemed a risky currency this is part of the reasoning for this week’s problems for the Aussie Dollar vs Sterling.
Trump has also previously suggested that he will impose tariffs on Chinese trade and as China is Australia’s biggest trading partner this is another reason for the Australian Dollar weakness.
Sterling has seen huge gains against all major currencies since the election and as Trump was a big advocate of the Brexit this has also helped to strengthen the Pound vs the Australian Dollar.
Obama has previously stated that the UK will go to the back of the line in terms of any trade negotiations but with Trump we could even go in front of the Eurozone.
Inflation in the UK has been rising recently and this is not set to slow down any time soon. This is likely to encourage the Bank of England to keep interest rates on hold and any signs of an interest rate cut are now distant memories.
I think as we go into next week we could see GBPAUD rates go higher so if you’re thinking of selling Australian Dollars to buy Sterling it may be worth looking at getting something organised soon.
If you don’t have the full availability of funds it may be worth buying a forward contract which allows you to fix an exchange rate for a future date.
Having worked in the foreign exchange industry since 2003 I am confident that I can offer you bank beating exchange rates and also help you with the timing of your currency transfer.
If you have a currency transfer to make and would like further information or for a free quote then contact me directly and I look forward to hearing from you.
Tom Holian [email protected]
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