US unemployment data showed the best levels since 2001 and this had led to a strengthening of all commodity based currencies including the Australian Dollar.
After hitting as high as 1.71 just over a week ago the Pound has started to fall against the Australian Dollar which has now started its own fightback.
There have been rumours circulating that the Bank of England may be gearing up to increase interest rates at next month’s meeting but in my opinion this would be far too early.
UK inflation is currently at 2.9% so there is an argument for raising rates but with average earnings not keeping up at just 2.1% then an interest rate hike could cause real problems for UK economic growth.
I say this because if an interest rate hike does take place this will increase costs for mortgages and rent which in effect which reduce the consumer’s ability to spend which is a large part of the British economy.
Therefore, I expect going into next week that we’ll see further losses for the Pound against the Australian Dollar next week.
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 I can.