The pound has rocketed against the Australian dollar this morning ahead of the key speech from UK Prime Minister Theresa May. Today is very much about GBP AUD exchange rates and levels have already increased by 1.5% and have broken the 1.70 target for so many clients.
Why is the Theresa May speech so important for GBP AUD?
The long awaited speech from the British Prime Minister today is vitally important for the future direction of the pound as it could unlock the recent stalemate in EU negotiations between Britain and the EU. The expectation is that an offer of €20 billion will be made to kick start negotiations and commence discussions for a future trade agreement. If the speech is received well then the pound could see gains of 1-2% and could see an end of the very weak levels the pound has suffered since the Brexit vote.
Those clients looking to buy Australian dollars could see a fantastic opportunity to buy dollars later today. Please get in touch if you have a requirement and we can take a closer look at how to maximise on the rates of exchange when there is a spike.
Clients should exercise some caution however as there is a possibility that the pound could sink if the speech is not received well. The details will be in the response from the EU and if it is not sufficient then GBP AUD could lose much of its recent gains.
On the whole though GBP AUD is in a strong position especially considering the likely interest rate from the Bank of England which may come as soon as November. If all goes well today the pound could start pushing towards 1.75 for this pair and I am cautiously optimistic. Those who need to sell Australian dollars would be wise to get in touch and act fast.
If you would like further information on sterling or Australian dollar exchange rates or any of the major currencies and to discuss how we can assist then please feel free to contact me on 0044 1494 787 478 and ask one of the team for James. Alternatively, I can be emailed directly on [email protected]