The Pound to Australian Dollar exchange rate has begun the week just north of the 1.80 benchmark level, which is around 3-cents lower than where the pair begun the week last week. There haven’t been many reasons for the Pound to climb in recent weeks and I think that until there is a new PM in place we could continue to see the political uncertainty continue to weigh on the Pound’s value which could push the GBP/AUD pair below the 1.80 level.
There will be a Reserve Bank of America meeting tomorrow and there are expectations of another interest rate cut, but as markets expect this amendment it’s already priced into the value of the Aussie Dollar. Despite this expected cut AUD is strengthening so I don’t expect to see the Aussie Dollar drop in value in it takes place, but I do expect to see the Aussie Dollar strengthen if the cut doesn’t take place.
Aside from this meeting the Aussie Dollar is being influenced at the moment but the US President’s trip to Asia, as not only has there been some positive developments between the US and China, which is a key trading partner for Australia, but we have also witnessed the first meeting on North Korean soil between a US President and North Korean leader and this has buoyed the markets. This kind of news is likely to further boost the Aussie Dollar, as it tends to gain in value in times of positive global updates due being a commodity currency.
If you have a large currency exchange to carry out in the coming days, weeks or months then you are more than welcome 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. A small improvement in a rate of exchange can make a huge difference so for the sake of taking two minutes to email me you may find you save yourself hundreds if not thousands of Pounds. You can email me (Joseph Wright) on [email protected] and I will endeavour to get back to you as soon as I can.