Can Sterling’s rally continue?
We have seen some very positive retail sales figures from down under of late, which had caused GBP/AUD to drop as low as 1.71. I am of the opinion the increase in retail sales was an anomaly due to Black Friday and the release of Apple’s iphone X. I would expect a significant drop on the next release.
Sterling has rebounded however, following a very optimistic outlook from Lord Jim O’Neill, economist and former chairman of Goldman Sachs. He has the firm belief that the UK economic back bone is strong and will recover from Brexit in a quick fashion. There has also been news from the Dutch and Spanish finance minsters that they are keen to have a close relationship with the UK post Brexit. Angela Merkel, the German Chancellor made similar comments, but this had a more significant effect on GBP/AUD as Germany is considered the engine room of the EU and they are heavily reliant on the UK for their imports.
The US Treasury secretary, Stephen Mnuchin also has stated the US will be forthcoming with a trade deal. Be wary of thinking the pound will continue to make gains against the Aussie however with phase two of Brexit talks shortly to commence the pound could well take a hit. Talks are set to be elongated and problematic. Both Davis and Barnier are at logger heads on several issues and this does not bode well for the pound.
If you have a currency requirement I will be happy to assist. It is crucial to be in touch with an experienced broker if you wish to maximise your return. If you let me know the details of your trade I will endeavour to produce a free, no obligation trading strategy for you. If you have a trade to perform I will also happily provide a free quote and I am confident our rates are among the best in the industry. I would be willing to demonstrate this in form of a comparison with any competitor. You can trade in safety knowing you are dealing with company FCA registered and one that has been trading for 16yrs. Foreign Currency Direct PLC. If you would like my assistance I can be contacted at [email protected]. Thank you for reading. Daniel Johnson