The Australian Dollar made further gains against the Pound during yesterday’s trading session following from the news that the UK Parliament has now approved the Brexit Bill, providing Theresa May with the power to invoke Article 50 and enter into formal negotiations with the European Union. Upon receiving Royal Assent, this could happen at any time however the Prime Ministers spokesperson has stated that this will be at the end of the month, after elections in the Netherlands today and the EU Summit meeting on 25th March.
This news did little to move GBP/AUD rates, however the key news from yesterday was on a second Scottish Independence vote. The Scottish Parliament will likely vote on whether or not to hold another referendum next Wednesday, and bearing in mind every council in Scotland voted to Remain in the EU referendum, the divide of nations could be a strong possibility. If this second referendum is approved I feel we could see GBP/AUD break past the 1.60 threshold for the first time since November.
This evening sees the Federal Reserve latest Interest Rate decision in the US where there is a 90% chance that they will raise rates from 0.75% to 1%. If this does occur, I would expect the Australian Dollar to weaken as a result of investors moving their funds to the safer US Dollar in search of higher returns. However if the FED do not act and vote to keep rates on hold, this shock could cause a surge of investment back into the Aussie Dollar pushing GBP/AUD exchange rates below 1.60.
In the early hours of tomorrow morning we have key unemployment data released at 12.30am, No change from the previous unemployment rate of 5.7% is expected, however as these releases are outside of trading hours we have a number of options to help you to take advantage of spikes in exchange rates as they occur. Get in touch with us today to find out how we can help you to plan the timing of your future currency transfer.
Todays interest rate decision by the FED may weaken appetite for the Australian Dollar, presenting opportunities for the those looking to buy AUD. Speak with a member of our team today on 01494 725 353 if youd like to discuss an Australian Dollar buying requirement.
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