FCD Currency World Cup
Yesterday in the FCD Currency World Cup we looked at the Euro for Belgium and the Algerian Dinar and although the battle between the two currencies was a bit of a walk over the actual match in the FIFA world cup between the two countries was less convincing but once again the match followed the lead of the currency world cup as Belgium (the Euro) triumphed. Today we are looking at Australia versus the Netherlands as the Australian Dollar and the Euro take centre stage.
Australian Dollar (AUD)
Currently the Australian Dollar has been very volatile ranging from in the low 1.70’s up to the high 1.80’s against Sterling and at present the outlook is negative as there is expected to be a decline in mining investment which is one of the key sectors of the Australian economy and has kept the country reasonably buoyant. Also, the latest set of minutes from the Reserve Bank of Australia (RBA) stated that the recent strangth of the Australian Dollar is becoming a problem again. Last year the RBA intervened in order to weaken the currency as its strength was damaging their exports (a strong currency makes exports more expensive and therefore less attractive) and as a result the Australian Dollar moved dramatically resulting in some good opportunities for clients looking to buy currency. The move in recent times has been less dramatic compared to last year but since the RBA commented at the start of the year that they were happy with where the AUD was it has strengthened back bringing another intervention from the RBA in to focus. So, if you are looking to buy or sell AUD it is likely that the volatility is far from over and so it will be important to keep in close contact with one of our experienced currency brokers here at Foreign Currency Direct plc who can keep you informed of all the latest movement in the exchange rates.
Netherlands – Euro (EUR)
Sterling has continued to push up against the Euro following the recent cut in interest rates in the single currency economy and following the comments from Mark Carney, the Governor of the Bank of England, that interest rates in the UK could rise as soon as this year the Pound looks set to remain strong against the EUR. Today we have the Bank of England (BoE) minutes and there is a chance that we could see more members of the BoE calling for an interest rate hike which could strengthen Sterling even further. Falling 2.5% against Sterling in the last month alone we are currently close to a 2 year high against the Euro presenting some excellent buying opportunities.
Despite the problems in the Eurozone it is still marginally stronger than the AUD and so as a result the Netherlands just pips the Australians in the FCD currency world cup.
If you need to buy or sell Euros or Australian Dollars make sure you keep in close contact with one of our senior currency brokers here at Foreign Currency Direct plc, you can either give us a call on 01494 725353 or alternatively email me directly on email@example.com