With the currency markets moving every two seconds, it can be vitally important to be aware of what is driving the currencies in or out of your favour. The below table shows the difference in AUD you would have achieved when buying £200,000.00 during trading yesterday.
|Currency Pair||% Change||Difference on £200,000|
Risk appetite has been increasing following political and Federal Reserve uncertainties in the US and also with increases in commodity prices.
The chances of a Fed rate hike are low due to Trump’s outlandish behaviour and commodities are in high demand for the investor. This has seen higher demand for the Australian Dollar. Australia’s biggest export, iron ore nearly reached $78 a tonne during Friday’s trading, the highest levels we have witnessed since April.
The Reserve Bank of Australia (RBA) have tried jawboning, attempting to talk down the value of the Australian Dollar as apposed to a change in monetary policy. It is not having the desired effect and GBP/AUD currently sits at 1.62 and is performing well against the majority of major currencies.
If investors continue to leave the US dollar in favour of higher returns from the Australian Dollar we could see Sterling suffer further against the Aussie.
Janet Yellen, the chairlady of the Federal Reserve is due to speak at the Jackson Hole Symposium on Friday. The Jackson Hole Symposium is a forum for various members of the financial fraternity to discuss current economic conditions and future monetary policy. If she gives away any hints to a rate hike in the US the Australian Dollar is likely to suffer and we could see small gains for Sterling.
There is little data of consequence from down under this week.
If you have to move short to medium term buying Australian dollars with Sterling it may be wise to bite the bullet despite current low levels. There is very few factors to base a significant Sterling rally on. Clarity on Brexit and a stable government will be required if GBP.AUD is to move closer to 1.70 again.
For more information on how future data releases could affect your currency requirement, call our trading floor on 01494 725 353 or email me here.
From start to finish with all contacts you feel like a VIP client even if you are exchanging small amount of currency. Always polite cheerful and give you straight talking advice before making the decision. Daniel Johnson and the team are a pleasure to deal with.
Daniel Johnson was very helpful throughout the transaction. It was quick and hassle free. I would definitely use this method again.
Excellent… can’t fault it… Thankyou Daniel.
Daniel Johnson explained clearly and in an easy to understand way what the process would entail before I made the transaction to pay the deposit on an overseas property. The transaction was carried out in an efficient and timely manner and I felt no pressure at any time.