The Pound has been climbing since Tuesday when the UK PM, Theresa May gave clarity to the UK Governments Brexit plans.
Uncertainty almost always weighs on the underlying currency in question and the Pound had felt the effects prior to her speech on Tuesday, but in it’s wake the Pound had one of it’s best days in years and gained against the US Dollar by it’s largest margin since 2008.
At the time of writing the Pound to Australian Dollar exchange rate is trading around the 1.63 mark and I wouldn’t rule out a move above 1.65 if the positive sentiment surrounding the Pound continues.
It’s also important to note that today is the day of Trump’s inauguration in the US, and due to the potential impact of his Presidency right from the onset, I wouldn’t be surprised to see investors lose interest in risk-correlated currency such as AUD, and prefer to hold funds within safe haven currencies such as the Swiss Franc or Japanese Yen. Should this be the case it’s likely that the Aussie Dollar will suffer, which could aide the GBP/AUD pair and push it above 1.65.
There are no major economic data releases today out of the UK or Australia so I expect sentiment and Trump’s inauguration to drive the pair, and moving forward if you wish to be kept updated with key data releases feel free to get in touch.
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 contact 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.