We are now just less than 2 weeks away before Article 50 is due to be triggered in the UK and the currency markets are waiting hesitantly before deciding which way they are likely to move.
GBPAUD exchange rates have been trading either side of 1.60 on the Interbank level this week and although the Pound has seen some small gains the increase has been rather limited to say the least.
The House of Lords challenge has now been overcome as well as the UK government now officially having been granted Royal Assent which now means we are waiting for it to happen any day now.
Brexit secretary David Davis has confirmed it will happen by the end of the month but as yet no formal date has yet been announced which makes me personally a little suspicious.
It could be argued if the UK was ready to start the negotiations then the trigger would have already taken place so to me it appears as if the UK government is stalling while it still makes its mind up as to what happens when the negotiations officially begin.
The impact this could have on Sterling could in my opinion be rather dramatic to say the least. If you remember what happened to the Pound last June once the Brexit vote was confirmed we saw losses of over 20 cents on GBPAUD exchange rates in a very short period of time.
This highlights the importance of being able to move quickly when converting Australian Dollars so it is crucial to make sure that you’re ready to make a quick purchase if things go the wrong way.
With unemployment in Australia coming out worse than expected at the end of the week this would have typically weakened the Australian Dollar vs the Pound but in this case it did little to move the markets.
Therefore, this is why I expect to see huge volatility towards the end of this month for GBPAUD exchange rates in the run up to Article 50.
If you have a currency transfer to make and would like further information about what is happening or would simply like a free quote when buying or selling Australian Dollars then contact me directly and I look forward to hearing from you. A quick email could save you a lot of money compared to using your own bank.
Tom Holian [email protected]