The expectation for GBPAUD exchange rate is rather mixed with the pound really struggling to make much headway following a tough week. Tuesday saw GBPAUD drop as members of the Bank of England confirmed they will not be so positive about raising interest rates. The overall belief the pound would rise if the Bank of England raise interest rates has been supporting the pound but this is now looking less likely. The Australian dollar has also been benefiting and rising because the US Federal Reserve have been slightly move dovish (soft) in their approach towards raising interest rates.
If you are buying Australian dollars with pounds there is a belief we could see 1.70 but I think it is more likely the GBPAUD rate will actually drift lower. This is because there are so many negative factors surrounding the pound and I believe market conditions are much more supportive for the Australian dollar to rise. This largely stems from the fact the Australian dollar is a commodity currency and will appreciate in value when investors seek a higher return.
If you need to buy Australian dollars with pounds the short term forecast is not looking so good. Trading conditions seem to favour sterling slipping, I mean just what would actually lead to the pound rising? Uncertainty over the Brexit and the UK economy indicates to me the pound will remain on the back foot. I also believe the Australian dollar will retain much of its strength in this current climate.
If you have a transfer to make then getting all the information available and tracking the latest trends is key to helping maximise your transfer. A 1 cent improvement on a £200,000 transfer buying Australian dollars could achieve you an extra 2000 Australian dollars!
For more information at no cost or obligation please speak to me Jonathan by emailing [email protected]. We are expecting some really interesting movements on the GBPAUD rates, of course it won’t be just downward, there will be spikes to take advantage but you need to be prepared! This is what we can help you to monitor and achieve.
Thank you for reading and I look forward to hearing from you.