The Pound to the Australian Dollar exchange rate has once again fallen during the course of the week as the Brexit uncertainty continues to weigh heavily on Sterling exchange rates.
The absence of any clarity as to what will happen with the discussions and the worry that the UK will end up losing access to the single market has caused confidence in Sterling to wane.
On Thursday the Bank of England announced they would once again be keeping interest rates on hold with a 9-0 vote and the Quarterly Inflation Report suggested that inflation would fall from 2.8% to 2.7% which now means any sign of any interest rate hikes coming in the near future are now almost non-existent.
This has resulted in a big sell off for Sterling with global investors seeking higher yielding currencies in the form of the Australian Dollar which is why we have seen such big falls for GBPAUD exchange rates..
The prices of commodities such as iron ore during the last year have increased by 50% and with Chinese demand for Australia’s raw materials this has helped to strengthen the Australian Dollar vs the Pound as highlighted by the recent announcement of the Commodity Index.
Next week the Reserve Bank of Australia will hold their latest interest rate decision on Tuesday with no signs of any change to policy. With commodity prices rising then this has seen Australia’s growth forecast predicted to come out at 2.4% compared to the previous result of 1.8% and combined with America’s strong growth this has kept demand strong for natural resources.
Going into next week I expect GBPAUD exchange rates to fall below 1.60 especially if the comments from the RBA remain positive and so if you need to buy Australian Dollars in the near future it may be worth organising early in the week.
Having worked in the foreign exchange industry for one of the UK’s leading currency brokers I am able to offer you bank beating exchange rates as well as helping you with the timing of your currency purchase.
For further information or for a free quote then contact me directly and I look forward to hearing form you.
Tom Holian [email protected]