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 during the high and low points of the past month:
|Currency Pair||% Change||Difference on £200,000|
The Australian economy has been struggling of late, with stagnant wage growth, poor housing data and retail sales plummeting. The RBA bolstered this concern on Tuesday morning when they decided to keep Interest Rates on hold at 1.5% for the fifteenth meeting in a row.
The Reserve Bank of Australia released its latest Monetary Policy statement overnight last night, and the bank did little to ease the minds of investors over the outlook of the Australian economy. The RBA cut growth forecasts by 25%, saying that it’s currently on track to miss its inflation target for the fourth year in a row, and that it is unlikely that it inflation will rise above the bank’s target of 2% until the end of 2019.
The RBA stated that inflation from July to September was only 1.5%, revised down from 1.8%. It is crucial for the bank to aim to keep inflation levels between 2-3%, as anything lower signals a lack of consumer spending, likely due to low wage growth. However they did state that, as unemployment levels have reached their lowest in four years, wage growth should start to recover soon.
The statement caused the Australian Dollar to weaken against its major counterparts overnight, and the extent of these losses may not be seen fully until UK trading begins this morning.
There is also a host of economic data released in the UK, including Industrial and Manufacturing Production, GDP estimates and trade data, therefore if any of these releases impress I would expect to see further Aussie weakness.
Next week, the main economic releases from Australia are Consumer Confidence figures which are due to be released on Tuesday, followed by Unemployment data on Thursday. The UK has just resumed Brexit negotiations in Brussels so I would expect this to take centre stage in determining GBP/AUD rates for the next few weeks. Get in touch with us today so that we can help you to time your transfer for the best possible returns.
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.