The Pound began to fall after Thursday’s Bank of England interest rate decision which saw the vote split 6-2 in favour of keeping rates on hold.
In June the split was 5-3 but as Kristin Forbes has left since the last decision the incoming MPC member Silvana Tenreyo decided not to rock the boat so rates were kept on hold.
This immediately saw the Pound fall against the Australian Dollar and the movement was exacerbated with Mark Carney’s comments which followed. He highlighted the risks that the UK economy is facing caused by the uncertainty of the Brexit vote and it appears as though the UK economy is started to be affected.
Indeed, the growth forecast for the UK was downgraded from 1.9% to 1.7% for 2017 and down from 1.7% to 1.6% for 2018.
After some small gains for the Pound vs the Australian Dollar at the start of last week the problems in my opinion are now likely to continue.
On Tuesday the latest NIESR GDP estimate is due out for the UK.
Although these figures are not the official ones they are usually very accurate and are the most up to date so if the figures highlight a slowdown this is likely to see the Pound fall vs the Australian Dollar.
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.