GBP/AUD – Reports yesterday emerged which indicate the EU could provide concessions on the Brexit deal. There could be the possibility that the UK will have access to the single market for goods and services whilst opting out of the free movement of people. The UK would have to replicate all EU social, environmental and customs laws.
We did see Sterling strengthen slightly, but firm news will be needed to see substantial gains. There is still the possibility of a “no deal” scenario which is keeping Sterling anchored against he majority of major currencies. Trade Secretary, Liam Fox recently stated he believes there is a 60% chance of a “no deal” which hit the Pound hard.
The Reserve Bank of Australia (RBA) decided to keep interest rates on hold this week and the speech relating to the decision by RBA Governor , Philip Lowe was slightly pessimistic which would normally cause AUD weakness. This was not the case against Sterling however, Brexit uncertainty outweighed the poor monetary policy outlook from down under and Sterling continued to suffer. This is a very worrying market reaction and shows the lack of investor confidence in Sterling.
If you have a currency requirement I will be happy to assist. It is crucial to be in touch with an experienced broker when the market is currently so hard to predict. If you let me know the details of your trade I will endeavour to produce a free trading strategy to suit your individual needs. Have faith knowing you will be dealing with a brokerage in business for over 16yrs, Foreign Currency Direct Plc. We are a no risk entity as we do not speculate on the market and we are registered with the FCA. If you have a currency provider take a minute to send over the rates they offer and I am confident I can demonstrate a significant saving. I can be contacted at [email protected] . (Daniel Johnson) Thank you for reading.