So far this week we’ve seen a very typical pattern of trading for the Pound against the Aussie Dollar.
Political uncertainty has been the main driver of price fluctuations for GBP exchange rates for the past year as the Brexit vote, and subsequent discussions surrounding the process of leaving the EU have continuously weighed on the Pound’s value.
At the same time Sterling has been boosted by impressive economic data during this time which has supported the Pound, so it will be interesting to see which of the two factors have the strongest bearing on GBP/AUD over time.
This week we’ve seen the same pattern continue as the Pound softened earlier this week as over the weekend the tensions between the UK and EU surfaced after the European Commission’s President Jean Claude Juncker commented that UK Prime Minister Theresa May ‘is living in another galaxy’ regarding Brexit negotiations.
Despite the Pound falling in the wake of these comments the currency has since taken a turn for the better as yesterday mornings UK Manufacturing data release came out at its highest level in 3 years. This data showed that sentiment within the UK’s manufacturing sector is going strong at the moment which has been aided by the weaker Pound.
Moving forward I expect data out of the UK to be watched closely as investors will be keen to see how the UK is performing during this crucial two-year period of negotiations.
If you have a large currency exchange to carry out in the coming days, weeks or months then you are more than welcome to speak with me directly as I will be more than happy to help you both with trying to time a transaction and getting you the top market rate when you do come to buy your currency. A small improvement in a rate of exchange can make a huge difference so for the sake of taking two minutes to email me you may find you save yourself hundreds if not thousands of Pounds. You can email me (Joseph Wright) on [email protected] and I will endeavour to get back to you as soon as I can.