The pound to Australian rate has hit the 1.70 mark as investors embrace Theresa May’s plans to call a snap General election. Expectations for the pound are now very much positive as investors find answers to some of the questions of uncertainty which have been plaguing the pound in the last few weeks and months. This is not just a story about the pound, of course, the Australian dollar has fallen back as the RBA indicate what many of us suspected some time ago, further interest rate cuts down the line are a real possibility.
GBPAUD could now move much higher as some of the previous reasons to hold on to Australian dollars evaporate. Expectations for the Australian dollar to move higher have been largely hampered in recent weeks as a mixed bag of economic data and a stronger pound makes life difficult for Australian dollar sellers. If you have Australian dollars to sell and are hoping for big improvements you might need to remind yourself of just how much the market has improved for you since the Referendum! With over 40 cents between the high and the low Australian dollar sellers are now at some of the best rates they have had since 2013!
GBPAUD could now well rise further, particularly since the likelihood is Theresa May will win the election with a very large majority. The overall expectation for the rates is that we could now easily test 1.80 in the next 4 weeks. If you have a transfer buying Australian dollars then making some plans in advance is vital to the understanding of where rates might head.
We could now be about to break into some very much fresh ranges and any clients with an expectation to buy or sell the Australian dollar should be doing what they can to plan in advance for future volatility. If you have a transfer to make and wish to get an overview of the market and receive some updates and news on what might be happening please feel free to get in touch directly with me Jonathan by emailing [email protected].