The first week of 2017 has had a much quieter beginning than last year, with buying Australian Dollar exchange rates seemingly anchored to the 1.68-1.70 range.
This behaviour on the Sterling Australian Dollar pairing is suggestive of a market awaiting some very important news.
I hate to flog a dead horse for our regular readers by consistently addressing the same material. But the mechanics of the Brexit will continue to govern the value of the Pound moving forward over the next few years, so we will all have to get used to repeated material as we await key decisions and verdicts.
For those who are unaware, currently the Supreme Court is deliberating on Parliament’s role in the triggering of Article 50, addressing an appeal on November’s decision by the Judicial Court which permitted a vote in the House of Commons on the matter.
As in November, financial markets should react well to the decision to involve Parliament in the Brexit process.
Parliament’s involvement in triggering Article 50 plays well for the Pound’s attractiveness, and therefore value, on the currency markets for a few reasons.
For one it means the aims and current state of negotiations moving forward to leave the EU will be much more public that if it was purely Theresa May acting through her Cabinet. Investors therefore won’t feel they will be taking such a serious gamble in holding on Sterling as they will remain informed purchasers.
There is also the greater likelihood of a softer Brexit – and whatever your own politics, this is certainly what global financial markets as a whole are hoping for – which again explains why a ruling to uphold the decision to involve Parliament should see the value of the Pound rise against its counterparts.
The expectation is that the Supreme Court will uphold the initial conclusion of the Judicial court a few months ago. This should see GBP/AUD rise to the tune of 3 cents, as it did in November.
The verdict is expected between the 12-17th of January, so if you are a Dollar seller, it may be wise to secure your currency ahead of this period, to avoid seeing your transfer gain greater expense, as it did throughout the Novemeber period last year.
On top of this, we are also expecting very positive economic performance information for the UK economy on Wednesday, focussing on a resurging manufacturing sector, alongside a more general look at UK growth in the final quarter of last year. Again, like most performance data released since the Leave Vote, markets have been surprised by the resilience of the UK economy, and the Pound should find another helping hand here.
So, in short, very good news is expected to be provided for Australian Dollar buyers in the short-term. Two major events are expected to make your transfers more profitable, which is why anyone looking to conduct a Sterling purchase, even over the next few months, should look to how you can secure these still historically favourable exchange rates before Wednesday.
If you are planning to make a currency exchange involving the Pound and another foreign currency, it’s well be worth your time getting in touch 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.
I have never had an issue beating the rates of exchange on offer elsewhere, and these current exchange rates can be fixed in place for anyone wanting to prebook their currency transfer later in the year at current exchange rates.