The pound has made good gains against the Australian dollar with rates for GBP AUD sitting just over 1.63. The pound still maintains the higher ground following from UK Prime Minister Theresa May’s Brexit outline which was received by the markets very positively with gains of around 2% immediately after.
Politics continues however be the driving force for sterling exchange rates and this is not going to change any time soon. The next date in the diary is Tuesday 24th January which has been confirmed as the date the Supreme Court ruling will give its verdict on whether Theresa May must consult Parliament before invoking Article 50.
We are expecting to see huge volatility once the outcome has been offered and it is understood that both sides are going to receive early sight of the verdict to prepare accordingly. New direction for the pound is expected to be seen immediately and the direction of movement will depend on the outcome.
For those individuals that have a pending requirement either buying Australian dollars or selling Australian dollars then it would be wise to make contact to discuss the options available to you. The pound made gains in excess of 3% against some currencies just two days ago and any repeat on Tuesday will mean there are both winners and losers. On larger amounts this makes a considerable difference often in the 000’s, for example from a property sale / purchase.
Australian inflation numbers are released overnight as well as employment data which is likely to create volatility for the Aussie. Unemployment is expected to rise to 5.8% from 5.7% which would signal a slight worsening in the Australian economy which could see some dollar weakness.
If you would like further information on Australian dollar exchange rates and to discuss how we can assist then please feel free to contact me on 0044 1494 787 478 and ask one of the team for James. Alternatively, I can be emailed directly on [email protected]