Buying Australian Dollar exchange rates have dipped away from their recent 7 month highs thanks to some lacklustre economic and wage growth forecasts for the UK economy.
The Bank of England downgraded UK growth forecasts down to 1.9% for the year, below the magic 2% mark, and made concerning noises about future interest rate rises being delayed.
The UK defying market expectations from the shock of the Brexit is one feature that has been propping up the Pound’s value. Whenever the dent is put in this picture the Pound is likely to suffer.
Unfortunately this has been coupled with a stronger Australian Dollar. A byproduct of a weakening US Dollar in the face of Donald Trump’s latest scandal which we do not need to go into detail on.
For now, the key point for anyone with an Australian Dollar interest is that, given there is little expected news this week, this dominant narrative of a dented Pound and an Australian Dollar benefitting from lost investor interest in the US Dollar should continue.
Later on this month, based on trends from the 2015 election, the upcoming 2017 election will begin to change the market trend.
Anyone who has the time to wait for UK election polling to begin to influence Sterling’s value as we get within throwing distance of polling day, should contact me to discuss a strategy on how to approach the vote to secure any targetted peaks and ensure you are better protected from any downside risk.
Otherwise, I strongly recommend contacting me on Monday if your time period means you need to secure an exchange rate before May 20th.
I have never had an issue securing more commercial exchange rates than what is on offer elsewhere due to the multiple counterparties I buy through. Contact me over the weekend on [email protected] while markets are closed for a short discussion concerning your personal situation.