The Pound has now hit its best rate to buy Australian Dollars all year as it looks as though we could be seeing some positive movement behind the scenes with the ongoing Brexit negotiations.
The Pound has finally broken through the resistance barrier of 1.75 and has touched 1.78 earlier this morning but has started to slip back as we see a little bit of short term profit taking.
The figures that have been suggested are approx €50bn as part of the divorce bill although this figure will probably be more like €100bn as the UK may have to pay for its liabilities that it has committed to previously.
The good news for anyone holding Sterling is that the talks appear to be going in the right direction at the moment and this has really helped to improve the outlook for Sterling exchange rates particularly against the commodity based currencies including the Australian Dollar.
Tomorrow morning brings with it the latest RBA Commodity Index which is an early indicator of export price changes. We have seen this fall in recent months so any further slowdown could see GBPAUD exchange rates go in an upwards direction towards the end of the week.
The rate to buy Australian Dollars will clearly be impacted by what is happening with the Brexit and if the discussions continue to go in the right direction we could see the market continue to improve in Sterling’s favour.
With the next EU summit due to take place in mid-December this could be the critical event that will impact GBPAUD exchange rates so expect to see a lot of volatility.
With GBPAUD exchange rates already rather volatile in the last few weeks it may be worth removing the risk of what may happen to rates by buying a forward contract which allows you to fix an exchange rate for a future date for a small deposit.
If you have a need to make a currency transfer in the coming days, weeks or months then feel free 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 compared to your bank or another currency broker.
Even a small improvement in the exchange rates can make a big difference so feel free to to email me and you may find you could save yourself hundreds if not thousands of Pounds. You can email me (Tom Holian) on [email protected] and I will respond to you as soon as I can.