The pound might well easily fall below 1.60 in the future as global conditions continue to favour the current trends we are witnessing on the currency pairing. Expectations for the pound remain confined to the uncertainty over future direction on the Brexit which does not look like being resolved any time soon. If you look at the timelines we have until 2019 for a deal to be arranged for the UK. Of course there is lots to sort out but it is more than likely the negotiations will go down to the wire.
Next week is a very important one for Australia with the latest Unemployment data released. This data has so far been a key indicator as to the strength of the Australian economy and therefore the Australian dollar. If you need to buy Australian dollars this release next week will be the key point of information to be focusing on.
Markets will move for a whole range of reasons, movement on the AUD is further complicated by its relations to international events which influence global attitudes to risk. Generally speaking markets are volatile with a number of key developments with North Korea and the United States. Such concerns can weigh on the Australian dollar which may see some big unexpected swings.
Overall the weakness of sterling seems like it will continue to drag the pair down, the improving and consistent economic picture in Australia should help this trend further. Rates below 1.60 seem a very real possibility in the coming weeks and months. There does remain however the very real possibility events like North Korea shake markets and we see the Aussie suffer.
If you have a transfer to make in the future please speak to us today to learn of the latest news and events in the future that could move your rates. Please contact me Jonathan Watson by emailing [email protected].