Over the last couple of days we have seen the Australian Dollar get even stronger against the Pound and yesterday it actually hit the lowest levels we have ever seen. The movement has been quite staggering with close to 8% movement since the end of November and at the moment there is little sign of this trend changing. While the economic pressures remain on the UK it seems that the strong mining industry in Australia is helping their economy go strength to strength resulting in the Aussie Dollar reaching these new levels.
Yesterday both the Bank of England (BoE) and the European Central Bank (ECB) kept interest rates on hold and there was no extension of Quantitative Easing (QE) however, because there was some expectation that the ECB would cut interest rates it meant that the Euro strengthened against Sterling by over 1 cent, or €2,180 on £200,000 currency transfer. This means as many had expected we have moved away from the 16 month high, however there are still some good buying opportunities for those clients that need to buy Euros but it may be worth moving soon in case the current trend continues and we see Sterling Euro exchange rates fall even further.
Meanwhile in the States President Obama has formally notified Congress of a proposed rise by $1.2 trillion of the American debt ceiling. This story hit the headlines late last year and although last time the increase of the debt ceiling was passed it happened in the 11th hour and with the race to the White House firing up again this year there is a chance that Obama’s rivals will want to place as much pressure on him as possible. So, the chances are we will see pressure on the Dollar in the next couple of weeks.
If you have any upcoming currency requirements make sure you stay in close contact with our experienced currency brokers here at Foreign Currency Direct so they can keep you informed of any movements in the market and help you make the most informed decision on when to trade your currency. Call on 0800 328 5884 or email firstname.lastname@example.org