The Pound has started to fall fairly quickly this afternoon against all major currencies including against the Australian Dollar as nervous traders sell off the Pound in anticipation of what may happen tomorrow once Article 50 is finally triggered.
The triggering itself is arguably not the event that will affect the markets but the subsequent statement made by Prime Minister Theresa May.
If she is bullish we could find some short term support for the Pound but personally I think we could see problems coming for Sterling exchange rates during tomorrow.
We have already seen the Pound fall by over 2 cents vs the Australian Dollar this afternoon and I think we could see further negativity for the Pound across the board overnight.
Personally, I cannot see how the Pound will recover against the Australian Dollar in the near future as once we trigger Article 50 there is no going back and we are effectively opening ourselves up to 2 years of negotiations with 27 member states who do not want to see the UK leave the European Union.
Therefore, once the discussions formally start I think the negotiations will be both difficult and protracted.
When you cast your mind back to what happened with the Brexit vote the GBPAUD exchange rate was trading close to 2 and since then we have seen the market fall by approximately 20% or the difference of £25,000 on an exchange of AUD$200,000.
If you have a currency transfer to make and would like a free quote then contact me directly. Working for one of the UK’s leading currency brokers I am confident that I can offer you better exchange rates than by using your bank.
Owing to the anticipated market movement this week the quickest way of contacting me would be by phone on 0044-1494-787-478 and asking for Tom Holian when calling in.
Alternatively feel free to contact me directly via email and I look forward to hearing from you
Tom Holian [email protected]