The pound has crashed against the Australian dollar as well as all of the major currencies after a monumental day on the markets with the UK quarterly inflation report and Bank of England interest rate decision followed by the Banks governor Mark Carney speaking. As if this wasn’t enough there was also a white paper surrounding the terms of Brexit which was produced in Parliament this afternoon.
The pound was already on the back foot against the dollar even before today’s events although GBP AUD has fallen by over 2% throughout the day. Those clients needing to sell Australian dollars would be wise to start considering their options as today has presented an excellent opportunity to convert. On a transfer of £200,000 equivalent the difference is over £4000 extra now compared to yesterday.
Sterling exchange rates may have performed better on the news that economic growth will rise to 2% in the UK as per the Bank of England’s forecast. However it was the news of further Brexit twists and turns which may have poured cold water on the pound.
Data is light on Friday with no Australian economic data and only services data for the UK .UK services as per the Purchasing managers Index highlights how well the engine room of the British economy is performing and any improvement may lend support to the pound.
However it is politics which is the biggest driving force at present for pound Australian dollar exchange rates. As this white paper is reviewed by politicians as well as a further vote in the House of Lords there is likely to be even more volatility to come in the next few weeks. Those clients with a pending requirement should be aware that a new date of March 9th has been proposed for Brexit to finally take place.
If you would like further information on sterling exchange rates or any of the major currencies and to discuss how we can assist then please feel free to contact me on 0044 1494 787 478 and ask one of the team for James. Alternatively, I can be emailed directly on [email protected]