With Donald Trump now having been officially inaugurated into the White House it appears as though the US Dollar has fallen as investors review his first speech.
In what was a relatively protectionist tone we could see a global flight to safety which means global investors seek to move money into the US economy and away from riskier currencies including the Australian Dollar.
The US economy has gone from strength to strength during 2016 and this is one of the reasons for the strength of the Australian Dollar against Sterling for the last few months.
However, could we now see some weakness on the horizon for the Australian Dollar against the Pound?
With Prime Minister Theresa May coming out earlier this week and being rather bullish in her speech concerning Brexit the Pound quickly made some very strong gains vs the Australian Dollar providing some much needed respite from the problems seen recently.
There is little economic data due out next week for the UK and Australia until Wednesday so I expect GBPAUD rates to be driven by sentiment towards Donald Trump’s first few days in office and therefore we could see Sterling make some further gains vs the Australian Dollar.
If you’re in the process of needing to either buy or sell Australian Dollars and are concerned about what may happen between GBPAUD rates in the next few weeks as the Brexit talks continue to dominate the headlines then it may be worth looking at buying a forward contract which allows you to fix an exchange rate for a future date for a small deposit.
If you have a currency transfer to make and would like to save money on exchange rates when buying or selling Australian Dollars compared to using your own bank or other currency broker then feel free to contact me for further information or for a free quote. Having worked in the industry since 2003 I am confident that with my experience I can help and I look forward to hearing from you.
Tom Holian [email protected]