After opening above the 1.80 mark yesterday, the pair have since fallen below this benchmark and they’re currently trading in the 1.79’s.
There doesn’t appear to be as much resistance/support around this level in the current market, after 1.80 has acted as a resistance for some time. The fall for the Pound today appears to be down to the latest Brexit update, and I wouldn’t be surprised to see this topic continue to influence exchange rates for the remainder of the year and potentially even further into the future.
Today’s update is in relation to the UK government confirming that the UK will not be part of the Customs Union after Brexit. There have been hopes that the UK would remain part of a EU Customs Union post Brexit, and it’s understandable why as once goods pass into the union there is no longer a need to apply taxes as the goods pass through the area and across borders.
The Pound’s slight drop today will be down to fears surrounding this matter and how it will impact the UK economy over the next few years. The next time this matter could move the markets quite dramatically is within the next couple of weeks when a White Paper will be published highlighting the progress the UK’s negotiators have made so far.
Apart from Brexit I think how the central banks of both the UK and Australia act this year will also influence rates. There are no hikes expected down under but there is from the Bank of England later in the year, perhaps offering the GBP to AUD rate an upward bias around that time.
If you have a large currency exchange to carry out in the coming days, weeks or months then you are more than welcome to speak with me directly as I will be more than happy to help you both with trying to time a transaction and getting you the top market rate when you do come to buy your currency. A small improvement in a rate of exchange can make a huge difference so for the sake of taking two minutes to email me you may find you save yourself hundreds if not thousands of Pounds. You can email me (Joseph Wright) on [email protected] and I will endeavour to get back to you as soon as I can.