This report will examine the factors that could affect exchange rates in the coming weeks to help you stay informed if you need to make a currency transfer. The table below shows the difference you would have received when buying £200,000 at the high compared to the low for the past week.
|Currency Pair||% Change||Difference on £200,000|
In the early hours of tomorrow morning the latest Consumer Price Index data will be released for Australia. There is expected to be an increase in both the quarterly figure and the yearly figure. The second and third quarters of 2017 saw the inflation rate fall and this will could be the first time in 6 months that the level picks up again, significantly moving back towards the 2.0%.
The Reserve Bank of Australia will meet next week and reveal their latest interest rate decision. In the past few months Governor Phillip Lowe has warned that until inflation starts to rise there is little chance that a interest rate hike will occur, therefore the release tomorrow comes out as better than expected could help boost the Aussie.
This however could create more of the same cycle as the central bank have major concerns over the strength of the Aussie. Over the last year Australia has had one of the highest interest rates in the developed world with many investors putting funds in the Aussie to earn good returns. This appears to be slowly unraveling but a tightening on monetary policy could once again see a surge of investors once again dramatically strengthening the Australian Dollar.
In the last two months we have seen the highest levels since the referendum in 2016 with the bottom levels slowly creeping up. The last time the rate was below the 1.70 was back in October 2017 and if the Brexit talks begin to offer some certainty then we may see the GBP/AUD continue to creep higher.
Major banks have forecasted Sterling to make back the ground lost last year and even though the GBP/AUD has moved of the 1.60’s the rate now still presents a great time for Aussie sellers. Make sure you contact you broker to discuss your requirement.
If you would like further information on how future data releases could affect your upcoming currency transfer, call our trading floor on 01494 725 353 or email me on email@example.com.