The Pound has found little support of late, with investors moving their funds into the higher yielding AUD.
GBP/AUD rates have been marooned below 1.65 for the past few weeks and looking back over a longer period, the Pound is now over 35 cents lower than pre-UK referendum.
The UK economy remains under pressure, with the markets becoming increasingly sceptical regarding the on-going Brexit negotiations.
With reports of a disjointed government and various opinions on how the UK should proceed, it is unlikely in my opinion, that the Pound will make any sustainable inroads against the AUD over the coming days & weeks.
Whilst market conditions can change quickly, I don’t foresee a major upturn in the short-term, with investor confidence in the UK likely to remain minimal. As such, it may be worth protecting the Pound’s current value rather than risk another downward spike below 1.60 against the AUD.
Looking at the Australian economy and whilst the AUD has performed beyond expectation against the Pound, being a commodity based currency it is heavily reliant on global growth.
Therefore, any slowdown in this sector, in particular in the US economy, could lead to global risk appetite shrinking and investors will then pull funds away from the riskier currencies such as the AUD and back into safer havens like the CHF or even USD.
This means that commodity currencies are open to larger swings than others and as such I would be looking to take advantage of the very attractive selling levels currently on offer.
If you have an upcoming GBP or AUD currency transfer to make you can contact me directly on 01494 787 478. We can help guide you through this turbulent market and as a company we have over eighteen years’ experience, in helping our clients achieve the very best exchange rates on any given market.
Our award inning rates can be accessed very easily over the phone and I can keep you posted with key market developments ahead of any prospective exchange you need to make.
Feel free to email me directly on [email protected] to find out all the options available to you ahead of your currency transfer.