Getting the best exchange rate can be achieved by understanding what is driving rates and the service of a specialist currency broker. Below are movements in just a month affecting Pound Sterling rates when buying £200,000:
|Currency Pair||% Change||Difference on £200,000|
GBP/AUD rates spiked slightly overnight, with the Pound hitting 1.7307 at the high. Despite this improvement the AUD has found plenty of support around the 1.73 threshold over recent days and it may be time for those clients holding GBP to take advantage of the rates, whilst the pair continues to trade above 1.70.
Early year financial reports have indicated that the Australian economy is set to continue to grow in 2018. If this prediction comes to fruition it will be Australia’s 27th year of uninterrupted growth.
This in itself is a quite staggering statistic, especially when you consider there have been at least three major global recessions during this period.
Whilst the Australian economy is of course not impenetrable, it is clear they are benefiting from high levels of skilled immigration and a booming mining industry, which helps to support their continued growth.
Problems have been cited in the past at how the Australian economy is over reliant on this sector but with such an abundance of raw materials (in particular iron ore) and a high global demand for their produce, it seems as though for those concerns are relatively unfounded.
The rising house prices in Sydney & Melbourne are becoming unsustainable and more importantly un-affordable for the majority of residents and this could impact the economy and ultimately the AUD in the coming months.
However, it is far more likely the markets will react negatively to Brexit fears and this is likely to put more pressure on Sterling. Market perception around the UK economy remains extremely fragile and for this reason I would be tempted to remove any risk and secure my GBP/AUD currency positions ahead of phase two of Brexit talks.
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