The results from the long awaited Supreme Court Decision in the UK has seen Australian Dollar buyers as the biggest winners on the exchange rates, with GBP/AUD climbing over two cents between the high and the low of the day.
So after such a highly anticipated event, what next?
We now have the framework established for the Brexit negotiations moving forward. The improvement in Sterling was the result of increased confidence in the currency markets to invest in the Pound. With Parliament likely delaying proceedings, and reigning in any extreme measures which a Government could do if it was acting alone, confidence to buy the Pound with the ability to sell before being caught by any chock surprises is much higher.
Essentially markets are now less nervousness than the first 6 months following the Referendum, where multiple dates recorded heavy falls on GBP/AUD exchange rates.
The deciding factor for the value of the Pound moving forward will be how well Theresa May works with her Parliament, and the degree of independence in her decision making – we will get an idea of this in the coming week.
We can expect strong arguments over access to the single market following the tone on PMQ’s today, so AUD buyers should be wary that sudden falls on GBP/AUD may occur as this market is still very reactive to such rhetoric. The last time Theresa May conducted an interview, GBP/AUD was actually one of the largest losers, falling by 2.4% in a single day.
With the risk there and a much better rate to purchase on the table, there is a very strong argument for anyone planning a foreign currency transfer into Australian Dollars to move sooner rather than later to secure these gains. This was the major positive news for the Pound this month. Now it is simply a rocky road towards Article 50.
It goes without saying that Australian Dollar sellers looking to buy Sterling are not facing the same rush, and opportunities are expected to present themselves in the short and medium term as we edge closer to Article 50.
If you are planning to make a currency exchange involving the Pound and another foreign currency, it’s well worth your time getting in contact with me on [email protected] overnight whilst markets are quiet 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.