GBPAUD reaches 8 week high

Australian Dollar Strength as Travel Corridor with New Zealand Opens

The pound has been on the charge of late and GBPAUD exchange rates have reached an 8 week high!

This week UK inflation numbers rose to 2.9% which promoted the Bank of England to release a hawkish statement after the interest rate decision.  Members of the monetary policy committee hinted that an interest rate hike could occur in the upcoming months if inflation continues to rise.

Personally I believe the Bank of England have artifically strengthen sterling in a bid to curb the worrying inflation levels and an interest rate hike this year is extremely unlikely. Nevertheless the Bank of England have provided a window of opportunity for Australian dollar buyers.

This week the Reserve Bank of Australia are set to release their latest minutes Tuesday morning. I don’t expect the minutes to provide any further insight to interest rate decision moving forward as the Governor will not want the Australian dollar strengthening any further in the upcoming months due to speculation.

Later in the week UK Prime Minister Theresa May is set to deliver a speech in Florence outlining life after Brexit. EU Parliament negotiator Guy Verhofstadt has exclaimed the UK Prime Minister will make an “important intervention” and if this is the case GBPAUD could rise or fall dramatically. The problem clients have that are converting GBPAUD is trying to predict Theresa May is impossible.

If you are trading GBPAUD in the upcoming weeks, months or years and want to save money, feel free to email me with the reason for your conversion (company invoice, buying a property) and the timescales you are working to and I will email you with my forecast and the process of using our company drl@currencies.co.uk.

** If you are already using a brokerage and would like to know if you are receiving the best rates possible email me with the exact figures and I will reply with our live price. This will take you minutes and in the past I have saved clients thousands! **