The pound to Australian dollar exchange rate has fallen further away from the 2 dollar symbolic mark with rates currently trading at 1.9635.
As some economies such as Germany and the US begin to start relaxing lockdown measures that have been in place since March, this could be the start of further improvement for the Australian dollar. The Australian dollar as a commodity currency is directly impacted by the performance of other economies and usually suffers in times of economic uncertainty. Any major progress fighting the battle with coronavirus could see considerable market volatility for the GBP vs AUD exchange rates. Those looking to buy or sell Australian dollars would be wise to make contact and look at the options available.
Easing of Lockdown Measures Provides Support to the Global Economy
There is optimism building that a number of important parts of the global economy could be about to re-open. This is echoes by the fact that US President Donal Trump has produced guidelines for US states to re-open economies. There have also been reports that a biotechnology company has produced an antiviral drug and is successfully treating patients with Covid-19. The outlook for the global economy however still remains far from clear. France has extended its lockdown until 11th May whilst Britain too has extended by another three weeks. In the Eurozone European car sales have fallen at the fastest rate ever. It would only take a sudden rise in the number of cases and a further spreading of the disease to change the outlook once again. Germany for example which has relaxed some measures and will allow for non-essential shops to open has seen an uptick today in the number of Covid-19 cases.
Although China has reported its first plunge in Gross Domestic Product in decades there were some positive signs coming from the industrial production numbers for March as factories in China have started to come back online. There would be an expectation that the April figures will continue to look stronger still.
Whilst much of the focus globally remains on the most pressing matter of Covid-19 the Brexit negotiations will still need to continue. There is uncertainty as to whether or not there will be an extension beyond the end of the transition period which finishes at the end of 2020. There have been reports that the EU may seek to offer a better trade deal in light of the issues that the EU currently faces as a direct result of Covid-19. Any change in direction on Brexit could see considerable market volatility for the GBP to AUD pair.
If you’d like to discuss these factors and how they could impact an upcoming currency transfer, feel free to get in touch with me, James Lovick, using the form below.