Thursday saw one of the most eagerly anticipated days of the year so far with the latest Bank of England interest rate decision but for anyone hoping to see GBPAUD exchange rates move in an upwards direction was sorely disappointed.
Although the Bank of England as predicted did raise interest rates for the first time in over ten years the accompanying statement caused the market to plummet to below 1.70.
The interest rate hike was arguably the most dovish in history with the central bank suggesting that we may only see two more rate hikes by the end of 2020, which is hardly good news for anyone looking to invest in Sterling for a positive yield.
However, today we saw GBPAUD exchange rates stabilise above 1.70 after such heavy losses which shows there is still Australian Dollar weakness at the moment against the Pound.
I personally think although we may see Sterling remain under some pressure against the Australian Dollar I expect to see the Pound make gains vs the Australian Dollar in the weeks ahead.
Therefore, if you’re looking at buying or selling Australian Dollars but want peace of mind in the next few weeks it may be worth looking at buying a forward contract which allows you to fix an exchange rate for a future date.
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.