The Pound has been really struggling to make gains vs the Australian Dollar over the last few weeks and since the election when GBPAUD exchange rates were close to 1.70 we have seen a huge drop in the value of Sterling exchange rates.
The Pound is finding it hard against all major currencies recently and the Pound has dropped by over 6% against the Australian Dollar in the last 2 months which is the difference of £6,000 on a transfer of £100,000 highlighting the importance of following the currency market or at least letting a currency broker do that for you.
Economic data in the UK has started to show signs of a slowdown as investor confidence in the UK economy as well as Sterling has started to fall.
UK GDP published on Wednesday showed a fall to 1.7% for the second quarter. This was in line with the expectation but the real problem is that the Brexit fears are slowly started to become realised.
The US and Chinese economy continue to post strong results which in turn in helping the strength of the Australian Dollar vs the Pound.
With the RBA unsure when to raise interest rates the meeting on Thursday by the Bank of England could be crucial as to the short term trend for GBPAUD exchange rates.
The likelihood is that we’ll see a change in the vote from last month which showed 5-3 in favour of a rate hike. If we see a fall in the appetite then I think this will send the Pound lower vs the Australian Dollar so keep a close eye out on the announcement later in the week.
If you have a 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 (Tom Holian) on [email protected] and I will endeavour to get back to you as soon as I can.