Sterling has continued its recent fight back vs the Australian Dollar and has gone from strength to strength during the last fortnight against a number of major currencies.
The positive movement for Sterling began when Prime Minister Theresa May spoke out about the issue of Brexit and stated that she would seek parliamentary approval in order to go forward.
The Supreme Court on Tuesday finally gave its verdict but with Theresa May having already spoken out the impact of the news was not as important as it could have been.
Turning the focus to what is happening globally we have seen Donald Trump inaugurated last Friday and he is now in the White House for his first full week.
This has caused global markets to remain anxious and this has caused investors to sell off more riskier currencies which includes the Australian Dollar. This has seen GBPAUD rates improve by over 3% during the last fortnight.
Indeed, yesterday the inflation level in Australia fell which is likely to put more pressure on the Reserve Bank of Australia as falling inflation creates an argument to cut interest rates and if this does become a discussion topic then this is also likely to see problems ahead for the Australian Dollar.
To me the Pound vs the Australian Dollar is heavily under valued and if you remove the Brexit issue we would see GBPAUD rates much higher than where we currently stand. However, in the UK things are still politically uncertain so although I think we’ll see Sterling improve against the Australian Dollar in the short term it is difficult to see what may happen longer term.
Having worked in the foreign exchange industry since 2003 for one of the UK’s leading currency brokers I am confident that not only can I offer you better exchange rates than using your own bank but also help you with the timing of your transfer.
If you have a currency transfer to make and would like to save money on exchange rates when buying or selling Australian Dollars then contact me directly for a free quote and I look forward to hearing from you.
Tom Holian [email protected]