The Pound has started to fall during the course of this week against the Australian Dollar as the Brexit talks appear to be struggling to make too much headway.
The recent amendment about the Irish backstop was voted through the House of Commons, which means that Theresa May will try to go back to the European Union in an effort to change the current terms of the backstop.
However, all throughout yesterday European leaders confirmed that the current Brexit deal on offer will not be renegotiated and this moves us towards the chances of even having a no deal Brexit.
Overnight, the Australian Dollar had a boost after the announcement made by the US Federal Reserve that they will be keeping interest rates on hold.
The statement made by Jerome Powell suggested that the Fed would not simply look at economic data but also listen to businesses and this means that the cycle of rate hikes may not be as quick as many had previously anticipated. Clearly, there is room for further interest rate hikes to occur in 2019 in the US but the statement from last night means that they may be slowing down their cycle.
The good news for the Australian Dollar is that global investors will move money away from the US and back into more riskier currencies including the Australian Dollar and this is in part a reason for the strength overnight.
I have worked for one of the UK’s leading currency brokers for 16 years and I’m confident that with my experience I can help you with the timing of your currency transfer.
If you would like to save money on exchange rates when buying or selling Australian Dollars and would like a free quote then contact me directly for a free quote and I look forward to hearing from you.
Tom Holian [email protected]