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 affecting Pound Sterling rates when buying £200,000 during the high and low points of the past 30 days:
|Currency Pair||% Change||Difference on £200,000|
After flirting just above 1.70 against the Pound on a number of occasions the Australian Dollar has been strengthening for the last week. With crude oil prices in having risen recent weeks this is a sign that global appetite to risk has been increasing and the commodity based currencies have been performing very well.
Australian Retail Sales have recently come out lower than expected for the month of August and are currently at their lowest level since August. Typically this announcement would result in weakness for the Australian Dollar but as we have seen over the last few days the Aussie Dollar has actually strengthened against the Pound.
This highlights how weak the Pound is against a variety of different currencies including vs the Australian Dollar. Wage growth, rising household debt and lower consumer spending are all reasons for the Reserve Bank of Australia to keep interest rates on hold. However, as shown with GBPAUD rates falling I think it is weakness of Sterling rather than a strong Australian Dollar.
The RBA assistant governor Guy Debelle is due to address the markets overnight and talk about the latest reason for keeping interest rates on hold but owing to the various reasons written above I think we’ll see interest rates kept on hold for quite some time.
In the short term I think the Pound will continue to be negatively affected by the ongoing political uncertainty as well as the Brexit so if you need to buy Australian Dollars it may be worth organising this shortly.
Owing to the time difference between her and Australia even though you may not be able to speak with your account manager outside of trading hours it may be worth looking at utilising a Limit Order which allows you to set a pre-determined rate which is automatically triggered if we are able to buy at your desired rate.
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