Foreign Currency Direct Foreign Currency Direct
Login Register

Employment change and the Unemployment numbers were released Overnight for Australia. Employment change numbers impressed at 25.7k, and the unemployment rate remained unchanged at 5.0%. Looking to next week inflation data will be released in the early hours of Wednesday morning. Inflation is set to take a tumble to 1.5% from 1.8%. If this materialises, the Reserve Bank of Australia (RBA) will have to think about their monetary policy and a cut in interest rates may come sooner than they were predicting. 

Currency Pair% Change (Month)Difference on £200,000
GBPAUD2.96%$10,420
GBPAUD forecast

GBP/AUD forecast

Over the last 4 weeks the Australian dollar has been making back some of the lost ground we saw since the start of the year. In one month GBP/AUD interbank exchange rates have dropped by 5 ½ cents making AUD$400,000 approximately £6,700 more expensive. The pound has lost momentum against the Australian dollar for a few reasons including the ongoing Brexit saga, Unemployment rate in Australia falling and Markit Services numbers falling in the UK. The US China trade negotiations have also made progress and earlier this week the Chinese Gross Domestic Product (GDP) figure exceeded expectation.

Looking further ahead, Theresa May and Jeremey Corbyn will continue to negotiate the ongoing Brexit deal. Labour want the UK to remain in a customs union however Theresa May at this stage is not prepared to give in to this demand. If the parties can’t come to a compromise and MPs don’t vote in favour of a majority on a path forward, the UK will take part in European elections and the uncertainty I believe could put pressure on the pound. However, Australian inflation figures are released next week. If inflation falls as much as forecasted this is going to put pressure on the RBA and may impact Australian dollar value in the short term.

News

The key reason for Sterling’s current vulnerability however is Brexit. If there is one thing investors do not react well to it is uncertainty and at present it is extremely difficult to call whether or not a deal is going to come to fruition.

Sterling Remains Fragile With a Brexit Deal Hanging in the Balance

Sterling is in an extremely fragile position following Boris Johnson’s announcement on Saturday that many areas of the UK would be placed into Tier 4 lock down.

By Daniel Johnson
Delay to the US Election Result Sees USD Gain Against GBP and EUR

Global Stock Sell-off Sees GBP Lower Against EUR and USD

GBP falls as the UK looks likely to implement tighter nationwide restrictions to curb the spread of the coronavirus.

By Rob Harold
Sterling Flying as GBP/USD Rate Breaches 2-Year High

Pound to US Dollar Rate Climbs by 6% Through August

GBP ended last week as one of the top currency performers, will sterling's resurgence continue?

By Joseph Wright
Read more articles

 

Download our monthly currency forecast

Download here

R. Blake

First rate service from Dayle Littlejohn in dealing with our transaction from Cyprus. He kept us updated at all times and we appreciated his sincere manner.

Read our testimonials

A. Marshall

France

First class foreign currency provider, great rates and outstanding customer service.

Read our testimonials

R. Braunton

UK

Great service very professional but with a personal touch. Everything went smoothly with no fuss. Would highly recommend.

Read our testimonials
Exchange rates on this page are interbank rates and indicate where the market is trading to show the performance of a currency pair. They are not indicative of the rates which we offer. The information on this web site is provided free of charge for information purposes only. It does not constitute advice to any person on any matter. Foreign Currency Direct plc. ("FCD") makes every reasonable effort to ensure that this information is accurate and complete but assumes no responsibility for and gives no warranty with regard to the same.