Over the last three months GBPAUD exchange rates have risen 10 cents making a 200,000 Australian dollar purchase £7,350 cheaper!
The pounds improvement against the Australian dollar is for two main reasons:
Firstly the High Court ruled UK Prime Minister Theresa May does not have the power to invoke Article50 on her own which means the UK should remain in the single market for a longer period or potentially in defiantly. It’s key to note the PM did appeal the decision to the Supreme Court and the verdict is set to be released this month.
Donald Trump became President Elect and the US raised interest rates, which meant investors moved their assets away from riskier commodity currencies such as the Australian dollar and flocked into the safe haven US dollar.
Looking ahead the Supreme Court verdict should have a major impact on the pounds value. If the Supreme Court rule in favour of the High Court I don’t believe MPs will vote in favour of leaving the single market therefore the pound could continue to make gains against the Australian dollar.
However if the Supreme Court overturn the High Court an exit from the single market could occur as early as March and therefore the pound could fall against the Australian dollar to the lower 1.60s.
As for the Australian dollar, GDP numbers for the third quarter of 2016 failed to impress and another poor reading would mean Australian would enter recession (the first time in 25 years). Couple this with the Reserve Bank of Australia comments about another interest rate cut, I expect the Australian dollar to have a tough start to the year.
Therefore it looks like the pound and the Australian dollar both have the potential to devalue and therefore the question will be which currency devalues more than the other? You will have options available to you therefore I would recommend getting in touch so I can outline your options and also keep you up to date of the events as they are released.
How can the company I work for help you?
The currency company I work for enables me to achieve clients rates of exchange that they won’t be able to achieve by using their own bank.
Property purchases and sales are my area of expertise, therefore if you need to purchase a foreign currency or you are about to complete on a sale abroad, today is the day to get in touch to discuss your options and to get an understanding of how we can save you as much money as possible.
Feel free to email me with the reason for your conversion (company invoice, buying a property) and the timescales you are working to and I will email you with my forecast and the process of using our company [email protected].
** If you are already using a brokerage and would like to know if you are receiving the best rates possible email me with the exact figures and I will reply with our live price. This will take you minutes and in the past I have saved clients thousands! **