Buying Australian Dollar rates have remained relatively stable following a sudden reversal in some of the Pound’s recent gains on Wednesday of this week.
The Pound has been pressurized once more this week however, with a live court case in the Supreme Court as the Government appeals the decision of the Judicial Court in November, with uncertainty over the direction of the Brexit weighing heavily on the Pound once more.
The frenzy of investors flowing into Sterling was the result of the previous Judicial decision which meant Government had to consult Parliament through the Brexit process. This jump in Sterling’s value due to increased demand was attributed to the high expectation that Parliament’s involvement in the process itself would yield a longer time-frame for the UK to enact a Brexit, alongside the likelihood that MP’s would push to retain closer economic ties with the EU.
This renewed uncertainty is what has caused Sterling to lose some of its recent strength.
Moving forward the US interest rate decision on Wednesday next week will likely provide a further boon for AUD buyers.
The Australian Dollar enjoys hefty demand due to the high level of interest available compared to other major currencies. Currently this stacks up at 1.5% compared to 0.25% in the UK and 0.5% in the US for example.
However, the US, following a succession of staggering performance figures released in their economy in recent months, despite the uncertainty surrounding their recent election, it seems likely that the US will be raising theirs next Wednesday to 0.75% barring any surprises.
The expectation is that if a stable currency is offering 0.75% interest, compared to an unstable Australian Dollar which yields 1.5%, then many investors will choose to leave the Australian Dollar and opt instead to secure US Dollars, with the AUD becoming cheaper with any mass sell off which ensues.
In the medium term however, the Pound is expected to take what could be quite a serious hammering due to speculative profit taking by high street traders which is set to take place in the latter part of December. Thus Australian Dollar buyers may see a ‘sweet spot’ emerging on GBP/AUD over the next week or so.
In these instances it is best to be in a position to move fairly quickly in case any tempting opportunities emerge, and the well informed purchaser will certainly have an advantage to avoid being ‘last to the party’ and being forced to accept a rate of exchange below any premium which is reached.
I am in a position to offer a proactive service to help my customers in timing their transfers, particularly during these volatile periods, in order to secure desirable exchange rates. I work for one of the UK’s leading brokerages with the average tenure of our dealer’s being in excess of 8 years in this job – longer than most companies in their entirety – so I am ideally placed to secure the most competitive rates and have never had an issue beating the rates of exchange on offer elsewhere for GBP/AUD. Simply contact me over the weekend on [email protected] and I will respond as soon as I am able.
Similarly if you are looking to be buying Sterling, as my article points out there are likely to be further opportunities for you later in the month with a cheaper Pound, so you can contact me to discuss the options open to you to monitor the markets and secure a desired exchange rate.
I have never had an issue beating the rates of exchange on offer elsewhere, so a brief conversation could save you thousands on a prospective transfer.