Today is likely to be the busiest day of the week with currency markets, particularly for pairs involving the British Pound as as lunchtime today the Bank of England will announce their most recent interest rate decision.
Personally I think we could see a slight uptick for the Pound which could provide those hoping to convert Pounds into another major currency such as the Australian Dollar for example, with a chance to do so.
I’m not expecting a change to be made to the current interest rate of 0.25% in the UK, but I am expecting Mark Carney (the governor of the Bank of England) to adopt a more hawkish (positive) tone in his speech during the Bank of England’s minutes just after the announcement.
The Aussie Dollar could also come under a bit of pressure itself as Donald Trump is gaining momentum against Hillary Clinton in the presidential election race in the States. Should this continue people are likely to withdraw funds from riskier assets such as commodity based currencies like the Aussie Dollar, which could benefit the Pound and offer an good buying opportunity.
There is also a lot of talk this morning regarding whether or not UK Prime Minister, Theresa May will need to to seek parliamentary approval before triggering Article 50 in March of next year.
Expect any talk of delaying the Brexit process, or talk of a ‘Soft Brexit’ to result in Sterling strength, and feel free to get in touch with me if you would like to be kept up to date with Sterling exchange rates.
If you would like to discuss an upcoming currency requirement between GBP and AUD, it’s worth your time getting in contact with me on [email protected] in order to ensure you make a well informed decision on when to make that particular transfer, as well as benefiting from highly competitive exchange rates from one of the UK’s leading foreign currency brokerages. Just provide me with a basic outline of your currency requirement and I will be back in touch with you as soon as possible.