We have seen the Pound consistently challenge levels of 1.70-1.71 in the last fortnight with the Pound clearly finding support vs the Australian Dollar.
The UK economic data announced during September was generally speaking very positive and this has been reflected in GBPAUD exchange rates.
UK inflation has hit a 5 year high recently and this has caused the Bank of England to consider raising interest rates sooner than the market previously had expected.
Typically if inflation rises then a central bank will hike rates in order to control the problem.
However, with UK average earnings falling behind inflation then in my opinion I think an interest rate hike could cause a problem for economic growth in the future.
The Reserve Bank of Australia are due to meet on Tuesday to announce their latest interest rate decision and at the moment I think the RBA will keep rates on hold but each meeting for the last few months has caused a lot of movement for GBPAUD exchange rates.
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.