With Brexit underway and the UK having up until the 29th of March 2019 to arrange trade agreements, the pressure on the Pound appears to have eased.
The Pound to Australian Dollar rate hit its highest level on Tuesday afternoon which was just below 1.65, and I think if the Pound manages to break above this level and consolidate above 1.65 we could see the GBP/AUD climb back up to the 1.70 level.
While the political uncertainty surrounding the UK has previously weighed on Sterling’s value as is often the case in these times, the invoking of Article 50 has given the Pound a boost against most major currency pairs. Couple this with the limited demand for AUD as the US has recently hiked interest rates and plans to a number of times this year, I’m expecting to see the Pound climb over the medium to long term versus the Aussie Dollar unless trade negotiations hit a standstill.
Later this morning there will be an important economic news release in the form of Services PMI. This offers us an insight into market sentiment within the services sector which is a key driver for the UK economy. Expect any deviations from the expected figure of 53.5 to create movement between GBP exchange rates and feel free to get in touch if you wish to plan around this or any other key data releases.
There are tools available to our clients to help them trade at higher levels than currently available, such as Limit Orders. If you’re planning a currency exchange between the Pound and the Aussie Dollar its worth getting in touch to discuss these types of options as well as our commercial level exchange rates as we may be able to save you a considerable amount of money, especially when compared with the typical bank.
If you are planning to make a currency exchange involving the Pound and the Australian Dollar, it’s well worth your time getting in contact with me on [email protected] in order to ensure you make a well informed decision on when to make that particular transfer, as well as benefiting from highly competitive exchange rates from one of the UK’s leading foreign currency brokerages. Just provide me with a basic outline of your currency requirement and I will be back in touch with you as soon as possible.