GBP/AUD rates have fallen by over 4 cents in the past week, as fears over a no-Brexit deal continue to intensify.
Reports this week have indicated that there could be a 60% chance that no deal is reached, a scenario that could have potentially devastating consequences for the UK economy.
Sterling had been trading above 1.78 last week but has fallen below 1.74 during this morning’s trading. It is clear that investor confidence in the UK economy is on the slide, with the Pound coming under pressure against all of the major currencies, including the AUD.
Those clients holding the Australian Dollar have been given some respite, with the AUD finding some much-needed support over the past couple of weeks.
Whilst its value has been somewhat artificially boosted following a sell-off of Sterling positions, there seems to have been a cooling of the trade standoff between the US & China (Australia’s largest trade partner). President Donald Trump has turned his attentions to Iran, hitting the country with increased sanction, whilst also vowing to alienate any country or company who attempts to do does business with them.
This in turn has moved the markets focus away from the US’s trade standoff with China, as such boosting global market confidence. When this happens, investors risk appetite goes up and commodity-based currencies such as the AUD can benefit.
The AUD’s run has continued, hitting 1.7346 against Sterling at its high this afternoon. This level seems to offer good value for those clients selling AUD, especially when you consider it’s recent woes.
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 winning 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.