The Pound has hit the best rate to buy Australian Dollars since June following a number of positive announcements during the course of the week.
Sterling has found some support against all major currencies towards the end of last week after some positive feedback from the talks in Europe. However, since Wednesday GBPAUD exchange rates managed to break through 1.60 on the Interbank level and have remained above this level at the time of writing and I think we could see further gains ahead for the Pound.
The first estimate of UK GDP figures for the third quarter showed much higher than expected numbers at 0.4% compared to 0.3% and this saw the Pound increase dramatically.
Part of the reason for such strength is that with the economy looking very positive this means that the Bank of England are becoming more and more likely to hike interest rates at next week’s meeting.
Potentially this could help the Pound make further gains vs all major currencies if this takes place.
However, one risk is that although the likelihood is as high as 84% chance of a rate hike if it doesn’t take place we could see some dramatic losses for the Pound vs the Australian Dollar so in effect there is a risk by not buying your Australian Dollars prior to next Thursday.
We have the release of US GDP data and this often has a big impact on commodity based currencies including the Australian Dollar.
Generally speaking if the data is positive later today this could see Australian Dollar strength vs the Pound but if the data is lower than expected then we could see the Pound make further gains.
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.