Last week Australian Dollar buying rates cheapened following a very illuminating speech given by Theresa May on Tuesday. This website and many others have fleshed out the specifics of the speech over and over again due to its signficance to the Brexit proceedings, the UK economy, and therefore to the value of the Pound.
GBP/AUD rates soared following the revelation in May’s speech that she had paved the way for Parliament’s continued involvement in the Brexit negotiations and in voting on any eventual deal reached.
Parliament throughout history is seen by financial markets as a moderating actor. This essentially implied some hope to the currency world that any potential harsh or damaging measures will be avoided. Whatever your politics, whether you wish for a hard Brexit or not, if you have a currency requirement you’ll have to grapple with the fact that currency markets appreciate slow change and startle easily to upsets in the status quo.
Now that May gave markets her aims, the final piece of the puzzle expected in January, is the Supreme Court decision to be released on Tuesday morning at 9:30am.
Now that we know Parliament will be ‘along for the ride’, we need to know if they will be part of the process to trigger the formal beginnings of the Brexit negotiations. Given the content of Theresa May’s speech, this seems a foregone conclusion, and should boost the Pound further to complement a fantastic day for anyone with an upcoming AUD buying requirement recorded last Tuesday.
So what is the wildcard on what is set to be a fairly positive week? Who else? Trump is set to make his first waves in office in his first full week. He’s already saying the media was lying about how few people were at his inauguration, and is trying to mend relations with the intelligence community.
He is facing his first 100 days in office, will he focus on healthcare and immigration, or will he make waves on the jobs front? It is a question as to whether his actions will attract investors away from the high yielding interest returns on the Australian Dollar. If it does, the AUD will become cheaper through decreased demand.
So watch this space, with so much governed by politics a premium will be put on being able to move quickly should any news come out which improve or create added expense to a planned currency exchange.
As such is you are planning on making a currency exchange involving the Pound and the Australian Dollar, it is well worth your time getting in contact with me on [email protected] to ensure you are in a well-informed position to make a decision on your particular transfer, and can benefit from the highly competitive exchange rates from one of the UK’s leading foreign currency exchange brokerages.
Just provide me with a basic outline of your requirement, and I will be in contact with you as soon as possible while markets are quiet preceding the Monday rush.