The Australian dollar is now gaining ground against the pound after the dollar had suffered falls over the last week. GBP AUD however is still riding higher after the UK snap election announcement which will be held 8th June 201. This will be the single largest driver for sterling exchange rates with considerable volatility to be expected over the next six weeks for this pair.
Those clients looking to buy Australian dollars are seeing a good opportunity which may move marginally higher. However, as the election approaches the pound could see a move lower. The last two elections in the UK have seen the pound fall in value in the weeks prior and the same is likely to happen this time round.
Although a conservative majority is expected the party could still lose seats and the Richmond by election this year is testimony to this after a recent Liberal Democrat win. With Brexit dividing the country it is difficult to see exactly how this election will play out which carries large degree of uncertainty for the pound. If you would like assistance with trying to time your exchange and look for the peaks then please feel free to make contact.
Wednesday morning sees a host of economic data from Australia which is likely to direct the Aussie. The Governor of the Reserve Bank of Australia Philip Lowe will be making a speech and any clues as to how the Australian economy is performing or any reference to a weaker dollar is likely to see a market reaction. Consumer Price Index inflation numbers are also released and anything strong here could also help the dollar.
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]