GBP/AUD rates are marooned under 1.65 at present, with the Pound struggling to make any sustained impact against the AUD.
Every time Sterling takes a step forward, another headline or rumour seems to sap investor confidence and the we see it snap back.
The currency markets continue to brace themselves this week for for further developments regarding the UK’s upcoming Brexit, with members of the House of Lords discussing the bill before it heads back to the House of Commons for final approval. Although there is likely to be little resistance to the result of June’s referendum, any amendments could cause a delay in the triggering of Article 50.
With UK Prime Minister Theresa May sticking stringently to her March deadline, any delay to this timeline would likely cause further uncertainty amongst investors and the Pound could come under further pressure against the AUD and a move back under 1.60 is not out of the question.
The final decision by Parliament is likely to have a significant impact on GBP/AUD exchange rates over the coming weeks, as investors risk appetite will be dependent on how smoothly the UK can facilitate its exit from the EU and what deals, if any, are left in place with our closest trade partners the EU.
The AUD has benefited from a run of positive economic data and the uncertainty surround the UK economy at present. However, due to the fact the AUD is a commodity based currency and as such relies heavily on its export trade, in particular the export of its raw materials to China, any global slowdown in this sector will hit their economy hard and the AUD would likely lose value as a result.
If you have an upcoming GBP or AUD currency exchange to make and you are concerned by the increased market volatility of late, it may be wise to look at protecting the gains you’ve made, or limiting your losses with one of our forward contracts, rather than gamble on what has become an increasingly volatile and unpredictable market.
If you would like to be kept up to date with all the latest market movements ahead of your currency exchange, or simply wish to compare our award-winning exchange rates with your current provider, then please feel free to contact me on 0044 1494 787 478 and ask one of the team for Matt. Alternatively, I can be emailed directly on [email protected]