The pound has rocketed against the Australian dollar this afternoon after the latest Bank of England meeting this afternoon. GBP AUD has now broken through 1.61 having fallen to a low of 1.59 earlier today. The Bank of England held rates steady today as widely expected but there was a new development. One member of the Monetary Policy Committee voted to raise interest rates creating an 8-1 split at the central Bank and this resulted in an instant market reaction with the pound rallying.
The mood at the moment in the UK is starting to look more upbeat with Brexit in my opinion. There is a course the government is steering towards and some of the recent comments from the Eurozone have been quite constructive in terms of the negotiation. For those clients selling Australian dollars for pounds this is important as there are currently some excellent trading levels available although we could well be at a turning point now. For assistance on the timing of a currency exchange this is something we can help you with.
Although the US Federal Reserve raised interest rates in the US last night to 1% which resulted in some Aussie dollar strength, it proved very short lived after the Bank of England news today. Data in Australia has proved very resilient with a buoyant housing market and recovery in commodity prices. The Australian economy is performing well at present and it seems unlikely the Reserve Bank of Australia will want to dampen the recovery with an interest rate hike when the general mood is more towards making a cut. As such the Aussie dollar is unlikely to benefit from any monetary policy intervention.
If you would like further information on Australian dollar 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]