In what has been a very volatile week on global stock indices the GBPAUD exchange rate has started to move in a negative direction during the course of trading on Friday.
After touching close to 1.80 against the Aussie Dollar on Thursday the gains have now been eroded.
The Pound rallied on Thursday afternoon following the Bank of England’s latest interest rate announcement.
Although the central bank kept rates on hold there is now an increased chance that a rate hike now may come as early as May.
UK growth forecasts for both this year and next were raised which gave the Pound a real boost against the Australian Dollar.
However, since early on Friday morning the Pound has once again started to fall against the Australian Dollar.
UK Trade Balance figures showed a decline on Friday morning and combined with comments from EU Chief Negotiator Michel Barnier this led the Pound to decline against all major currencies.
Barnier suggested that the transitional period which takes place between March 2019 and December 2020 is far from getting resolved which could cause problems for the UK when it next meets in March to discuss phase 2 of the Brexit negotiations which are to be focused on future trade agreements.
The Irish border issue appeared to be sorted back in December but now this could raise issues with the movement across the border and the uncertainty has caused the Pound to fall.
As we go into next week the UK releases its latest set of inflation data predicted to come out at 2.9%. With inflation continuing to remain high if we see the data come out the same or higher than expected this could see the Pound make a recovery as it provides further support for a future interest rate hike.
If you have a need to buy or sell Australian Dollars in the near future 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.
Having worked for one of the UK’s leading currency brokers since 2003 you can email me (Tom Holian) on [email protected] and I will respond to you as soon as I can.