GBP/AUD rates have fallen away slightly overnight, with the AUD finding plenty of support under 1.80.
The Pound had made significant gains over the past 72 hours following reports that the UK had agreed, at least in principal, a settlement deal with the EU worth up to 50 billion Euro.
GBP/AUD rates moved through 1.79, as investor confidence returned and the Pound benefitted as a result.
My opinion that we are working in a short-term opportunist market has not wavered and clients holding the Pound should be considering their positions around the current levels.
One of the driving forces behind this morning’s dip are reports regarding the Irish border. This has been a key point for the EU and one they have continually stressed must be agreed upon before Brexit negotiations can move on to phase two.
The DUP party have stressed that they will pull the plug on any proposed deal with the EU should Northern Ireland be treated any differently from the UK and with fears over a hard border between the North & South, it is clear that there are still many unanswered questions.
For this reason, I would be tempted to take advantage of the spike as the UK economy is still likely to remain under pressure over the coming months. Whatever the final bill is to be paid, it is sure to hit the UK economy hard over the coming years.
With many questions still to be answered regarding what sort of trade deal the UK can agree with the EU and how the UK economy may progress in unchartered territory, I would be looking to take advantage of short-term improvements such as the one that has presented itself, rather than holding out for longer-term sustainable gains.
If you have an upcoming GBP or AUD currency transfer to make you can contact me directly on 01494 787 478. We can help guide you through this turbulent market and as a company we have over eighteen years’ experience, in helping our clients achieve the very best exchange rates on any given market.
Our award inning rates can be accessed very easily over the phone and I can keep you posted with key market developments ahead of any prospective exchange you need to make.
Feel free to email me directly on [email protected] to find out all the options available to you ahead of your currency transfer.