Yesterday saw the pound fall against almost all other major currency pairs, and this has happened despite some strong economic data releases out of the UK throughout the week.
Perhaps the most important economic release came out early yesterday morning, as the UK Services PMI figures showed that sentiment within the services sector of the UK improved through the month of December. This update is key as the services sector accounts for over two-thirds of the UK’s economic output so it’s important for the UK that the sector remains buoyant.
Moreover the PMI figures were released in the manufacturing and construction sector earlier in the week and despite those being positive also, the Pound has softened and yesterday hit it’s lowest level in a month of 1.6821 at the mid-market level, after beginning the week at 1.7128.
The reason behind the weakening of the pound this week can be put down to Brexit jitters, as investors await the outcome of the supreme courts ruling on whether the UK government requires parliamentary approval in order to begin the Brexit process.
I’m expecting to see the Pound fall in value further if the government is successful in their appeal and allowed to begin the Brexit within the next few months, without the need to consult parliament. The outcome of the Supreme Courts decision is due between the 12th and the 17th of this month so anyone planning a currency conversion between GBP and AUD should pay close attention to this key topic, as it’s likely to have an impact on the pair.
If you are planning to make a currency exchange involving the Pound and the Aussie Dollar, it’s well worth your time getting in contact with me on firstname.lastname@example.org 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 outline of your currency requirement and I will be back in touch with you as soon as possible.