For many of my Australian dollar clients the questions that is asked regularly is will rates climb again above 2 anytime soon. My response hasn’t changed for a while now, quite simply I believe its very unlikely.
This week the Reserve Bank of Australia kept interest rates on hold and the consensus is that the next shift would actually be a rise to combat inflation. The problem I have with this is that this would cause the Australian dollar to strengthen further causing exports to become more expensive. Nevertheless a cut looks unlikely anytime soon.
As for the pound, its becoming clear that the UK will start the process of leaving the EU at the end of March therefore further falls for the pound are expected. For Australian dollar buyers within the next 2 months I expect rates will continue to fall further therefore purchasing upfront may be wise.
As for economic data this week, the UK are set to realise their latest inflation numbers Tuesday morning. Inflation has been rising of late due to a cheaper pound and the bond purchasing program installed by the Bank of England. I feel inflation could rise further and therefore a rise in the pounds value could occur. For Australian dollar buyers this week, this could be a release you look to target.
If you are trading GBPAUD in the upcoming weeks, months or years 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! **